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How is partial freezing imposed?

Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 Uma asked almost 3 years ago

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8 Answers
Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 veeru answered over 2 years ago

Hi, Partial freezing is imposed in the following ways: While imposing ‘partial freezing’, banks have to give due notice of three months initially to the customers before exercising the option of ‘partial freezing’. After that a reminder for further period of three months would be issued. Thereafter, banks may impose ‘partial freezing’ by allowing all credits and disallowing all debits with the freedom to close the accounts.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 veeru answered almost 3 years ago

Partial freezing is imposed in the following ways: While imposing ‘partial freezing’, banks have to give due notice of three months initially to the customers before exercising the option of ‘partial freezing’. After that a reminder for further period of three months would be issued. Thereafter, banks may impose ‘partial freezing’ by allowing all credits and disallowing all debits with the freedom to close the accounts.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 CA Sandeep Bohra answered almost 3 years ago

-Partial freezing is done by the banks if the customers do not provide the KYC documents at the time of periodic updation. -While imposing ‘partial freezing’, banks have to give due notice of three months initially to the customers before exercising the option of ‘partial freezing’. -Partial freezing is done by allowing all credits and disallowing all debts of the account-holder while giving him the option to close the account and take his money back. -If the accounts are still KYC non-compliant after six months of imposing initial ‘partial freezing’ banks may disallow all debits and credits from/to the accounts, rendering them inoperative.

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Picsjoin 2017224123730582 Archana answered almost 3 years ago

Hie Uma, Partial freezing is imposed in the following ways: - While imposing ‘partial freezing’, banks have to give due notice of three months initially to the customers before exercising the option of ‘partial freezing’. - After that a reminder for further period of three months would be issued. - Thereafter, banks may impose ‘partial freezing’ by allowing all credits and disallowing all debits with the freedom to close the accounts. - If the accounts are still KYC non-compliant after six months of imposing initial ‘partial freezing’ banks may disallow all debits and credits from/to the accounts, rendering them inoperative. - Thus, one year after the account is due for updation, if you do not provide the necessary documents/information, your account would become fully inoperative i.e, neither credits nor debits would be allowed in the account. Meanwhile, the account holders can revive accounts by submitting the KYC documents.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 Pushkala Santhanam answered almost 3 years ago

Partial freezing is done by the banks if the customers do not provide the KYC documents at the time of periodic updation. Partial freezing is done by allowing all credits and disallowing all debts of the account-holder while giving him the option to close the account and take his money back. However, before the Partial freezing is imposed the banks have to give due notice of three months to the account-holder. After that a reminder for further three months would be issued. In case the accounts are KYC non-compliant even after six months, then the banks will disallow both the debits as well as credits. In such cases, the account will be inoperative. After one year of non-updation of KYC norms, the account will be fully inoperative. In the meanwhile, the account-holder can revive his accounts by complying with the KYC Norms.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 Aarti Vadnerkar answered almost 3 years ago

The RBI has directed regional ruraland central cooperative banks to partially freeze bankaccounts of those customers who have not complied with the Know Your Customer (KYC) norms. Similar instructions were issued to commercial banks by RBI last month. "Banks may impose partial freezing by allowing all credits and disallowing all debits with the freedom to close the accounts. "If the accounts are still KYC non-compliant after six months of imposing initial partial freezing, banks may disallow all debits and credits from/to the accounts, rendering them inoperative," RBI said in a directive to the banks. RBI said banks will be free to take decision on closing of accounts of such customers. While imposing 'partial freezing', RBI said banks are advised to ensure that the option is exercised after giving due notice of three months initially to the customers and followed by a reminder for further period of three months. Meanwhile, the account holders can revive accounts by submitting the KYC documents as per instructions in force. The RBI notification also said banks need not seek fresh proofs of identity and address at the time of periodic updation, from those customers who are categorised as 'low risk', in case of no change in status with respect to their identities and addresses. "A self-certification by the customer to that effect should suffice in such cases," it said, adding that in case of change of address of such 'low risk' customers, they could merely forward a certified copy of the document by mail/post. Further, RBI also asked them not to insist on physical presence of such low risk customer at the time of periodic updation, the RBI said.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 veeru answered almost 3 years ago

While imposing ‘partial freezing’, banks have to give due notice of three months initially to the customers before exercising the option of ‘partial freezing’. After that a reminder for further period of three months would be issued. Thereafter, banks may impose ‘partial freezing’ by allowing all credits and disallowing all debits with the freedom to close the accounts.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 lochan answered almost 3 years ago

Partial freezing is imposed in the following ways: While imposing ‘partial freezing’, banks have to give due notice of three months initially to the customers before exercising the option of ‘partial freezing’. After that a reminder for further period of three months would be issued. Thereafter, banks may impose ‘partial freezing’ by allowing all credits and disallowing all debits with the freedom to close the accounts. If the accounts are still KYC non-compliant after six months of imposing initial ‘partial freezing’ banks may disallow all debits and credits from/to the accounts, rendering them inoperative. Thus, one year after the account is due for updation, if you do not provide the necessary documents/information, your account would become fully inoperative i.e, neither credits nor debits would be allowed in the account. Meanwhile, the account holders can revive accounts by submitting the KYC documents. Thanks

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