A new rule has arrived from the RBI. Even if a sudden transfer of just Rs 1,000 happens in your account, the bank can freeze all your money. Until now, it was simply frozen.
However, the RBI has now issued a new draft rule to fix this exact problem. Currently, what happens is that banks freeze the entire account as soon as they suspect cyber fraud. For months, you cannot even withdraw your own money,
even if a disputed transaction of just Rs 100 was accidentally caught. In August, the Supreme Court reprimanded the RBI, ordering them to fix this system. Now, the new draft clearly states that blocking the entire account will be the last resort. First, only the suspicious transaction amount will be withheld.
The bank will have to explain why the hold was placed. You will get 20 days to reply. No hold can last for more than 60 days. This is currently just a proposal; people can submit their feedback until October 2, and it will be implemented from April 2027. Now, your money will no longer remain hostage forever.
Effective from 01.04.2027