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Chandan Ghosh (Trader)     02 November 2013

Lien amount in saving bank

Bank has credited by mistake 10 lakh rupees in my state bank of india saving account.

Money has been credited three months ago. Money has been spent by me now i dont have that much money.

bank is currently showing lien amount of 50,000. Bank has not contacted me in 7 days after putting lien and without informing me they have put lien.

I am ready to pay 2 lakh ruppees now. and i will pay remainnig amount within three months.

My questions are:-

1) what bank can do if i dont pay amount?

2) What  legal actions it can take?

3) How to get more repayment time as much as i can get.

4) what can i do from my side to protect my self from legal actions?

5) Can get jailed?

I am ready to pay all the amount just i need is 3-4 months time.

I can pay partial amount only right now.( like 1/4 or 1/)


 8 Replies

BAALASUBRAMANNYAMM (Advocate)     02 November 2013

In this, both of you(yourself & bank)  have committed mistakes. As a matter of fact, Rs.10 Lakhs which was credited to your account, was not of you. It is your primary duty to inform the bank about the credit. But you were not to do so. You wilfully or voluntarily spent the amount either partly or fully, what ever it may be. The bank people also committed a blunder mistake, wherein they have not reacted and re-collected the said mistake. 

Hence the bank authorities have entitled to take action aginst its officials, who involved in this issue. And also the bank can take criminal action against you for your act of mischief. 

1 Like

Chandan Ghosh (Trader)     02 November 2013


what happened is in aug month i did online fund transfer for 10 lakh ruppes. Whom i did the transfer he got the money. But after 1 week bank auto-reversed the same back to my account. which i got 10 lakh extra as the person whom i transfered money he also got money. Now yesterday(1st Nov) bank has put lien amount 50000.

pls help me I dont want any legal actions against me. i am ready to give back money within 3 months.i can make only partial payment right now. pls tell me how can i protect myself.

RAJU O.F., (Advocate)     04 November 2013

In form the bank your willingness to repay and seek the required time for repayment. Obviously your commitment to repay will be utilised by the bank as your acknowledgement of debt and proceed against you, if you do not make payment within the promised period. Better sort out with the bank at the earliest.

2 Like

Chandan Ghosh (Trader)     24 November 2013

gm sir, need your genuine advice pls help me.


bank has called me yesterday, they are saving that make the full payment in 7 days. but i dont have full payment now. i need atleast 2 month to arrange for the money. pls tell me what should i do now. what should i say to them. can they send me to jailif i dont pay in seven days.

Rohit Kumar   08 December 2018

Same happened with me. I made the payment of my credit card through SBI NetBanking. Payment was successful. But nexd day, the amount was reversed to my bank account which I withdrew. Now SBI has set lien account on my account. I haven't received any call or mail from SBI. I want to know what action can SBI Take if I don't clear the lien amount.

Zeta Teresa Pereira   05 February 2020

Dear Sir,

In your case, you had a duty to inform the bank about the money that was credited to your account. You should not have spent the amount, it amounts to unjust enrichment. But since you are willing to pay back the amount, try negotiating with them and request for an extension. 

I hope your issue gets resolved.


Raksha Joshi   27 February 2020

Hello sir,

Thankyou for your question.

To undersand this you first need to understand - 

1)What is lien amount?

A lien means putting a lock. So, the lien amount is the amount which the bank has put a hold on. That amount is frozen, and you can’t withdraw those funds or use them until the lien is removed.

The bank may put a lien on a specific amount in an account, or on the entire account.

2) When does the bank place a lien?

a) Non-compliance of minimum balance requirements –

Most bank accounts have minimum balance requirements. Banks charge a penalty for non-compliance of them. If your account balance is lower than the minimum balance required, the bank will charge you the penalty and automatically deduct the charge from your account. But if your account doesn’t have sufficient balance to cover the penalty, the bank will place a lien on your account of that much amount.

b) Fixed Deposits as security for loans –

If you have offered your term deposits/ FDs as security against a loan, they are marked as lien and you can’t withdraw them.

c) Bounced/non-payment of loan EMI –

If you default on a loan payment, the bank may place a lien on your account of that amount.

Most banks have the right to place a lien on accounts held by them. So, if you default on one payment, they can put a lien on funds in your other account in the same bank.

d) Problem with cheque or draft deposited by you –

If there is an issue with a cheque or draft on your account, the bank may put a lien of that amount until resolved.

e) Suspicion of unlawful activity 

The bank may freeze your whole account in such a case. Or may put a lien on a specific amount. An example of this is non-payment of taxes.

f) Error generated by bank software –

This does happen sometimes. You need not worry, it can be resolved.

Note –You can also mark a lien on your account. You may mark a lien to set a limit for your trading account. Or you can mark a lien at the time of subscribing for an IPO. That is to make sure that you have enough funds available if you get allotted that IPO.

3) you can not withdraw the lien amount until the dues are settled. If one draws a cheque, the cheque will bounce.

4)  How to resolve the lien amount?

After a bank marks a lien amount, you can put the required balance in the account. Once you settle the liabilities, the bank will lift the lien. After settling the lien, you can use the additional funds in your account.

If you don’t settle the liabilities for which the lien is put, the lien amount is used to settle them.

The best way to resolve any problem of lien amount is to go to your home branch and ask them what to do. If you can’t go the branch, you can call the bank’s customer care.

Sometimes the bank may place the lien on behalf of a third party to whom you owe money (lien-holder). In such a case, the bank will place the lien for a few days for you to go to the court and resolve the issue. If you don’t take any action, or the court rules against you, the bank will give the lien amount to the lien-holder. 

In case of lien placed on FDs against loans, the lien will remain until the loan is repaid.

5) How to get back the lien amount?

If you feel that the bank has put the lien due to any error, go to the bank and ask them about it. The bank will then resolve the issue and remove the lien. But in your case, since you are aware of the reason for the lien, you can go to the bank and negotiate a time period for you to pay it back.

Hope this helps you and things workout well for you!









Zeta Teresa Pereira   03 March 2020

Dear Sir,

You were not supposed to spend the amount credited to your account. You had a duty to inform the bank regarding the same. It's unjust enrichment.  Sir, since you are willing to pay back the amount within a few months, try negotiating with the bank and ask for an extension. The bank will lift the lien only after you clear your liabilities. 

I hope you resolve your issue soon.

Thank you, Sir.



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