What is Lien Amount in State Bank Of India Account?
In simple terms, the Lien Amount is the Lock Amount. Every account holder must be familiar with the bank’s terms. A savings account, a current account, a fixed deposit account, or a loan account are all options.
Placing a lien is the same as putting a lock on something. As a result, the lien amount is the amount that the bank has placed on hold. That amount is frozen, and you won’t be able to withdraw or use it until the lien is lifted. A bank may place a lien on a portion of an account or the entire account.
The Lien Amount is the Lock Amount in basic terms. The sum is frozen after SBI places a lock on it. Unless the bank removes the lien or lock, account holders are unable to retrieve the locked funds.
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The bank puts the lien for securing the funds for several reasons:
- The banks have proposed that a minimum balance be maintained in the account. Account holders who do not maintain the minimum balance are subject to non-maintenance penalties. The penalty charges will be deducted automatically by the bank. However, if the account is insufficiently funded, the bank will place a lien on the account for the penalty amount.
- You won’t be able to withdraw the FD amount if you deposited it as a security against a loan because the bank recognised it as a lien amount.
- If you fail to repay a loan’s EMI, the bank may place a lien on your property to cover the EMI amount.
- If there is a problem with a draught or a check, the bank may place a lien on the account. The amount of the cheque/draft will be the amount of the lien.
- If the bank detects any unusual activity in the account, it may close it or place a lien on a particular sum. If you don’t pay your taxes, the bank may place a lien on your property.
- The bank software may be at blame for the lien amount inaccuracy. In this instance, it will be handled automatically.
Important Details About the Lien Amount
The bank will not lift the lien unless you pay the bank’s debts. You won’t be able to withdraw the money until then, and you won’t be able to write checks because they’ll bounce.
The bank will remove the lien from the amount or account once you have paid the debt. You must go to the branch and inquire about the procedure for resolving the problem. Also read – best loan bank details
You might also contact the bank’s customer service department to inquire about the situation. Remember! Unless you repay the loan amount, the lien on the FDs against the loans will remain in place.
Also read: SBI Balance Enquiry TollFree Number Details
Source: SBI Lien FAQ