In the banking industry, many banking terms are employed. Users who often use online banking should be familiar with the generic words used by the banks. In this article, we will look at the phrase ‘Lien Amount,’ which is employed by the State Bank of India.
What is lien amount in the State Bank of India?
‘Lien Amount’ is commonly used in SBI to prohibit account transactions. Users will be unable to withdraw funds from the locked amount until the State Bank of India lifts the Lien or Lock from that bank account. A client must have the minimum needed amount in their bank account, according to State Bank of India regulation. Users who fail to uphold the required balance will be penalized by the bank. However, if the account does not have a sufficient balance, the bank will place it on a lien.
Why does SBI put a lien?
There are a lot of reasons for the bank to put a lien on your account. They’re listed below.
- If you fail to settle the debt, the bank may place a lien on your account. This might include penalties for failing to maintain a minimum balance or any of the fees that the bank imposes.
- Virtual Debit cards may be created by SBI as well as several other banks. These digital cards add an additional degree of protection to online transactions. When you establish a virtual card for a specific amount, SBI places that amount on Lien. The money is only deducted if you use your virtual card to make a purchase. If you don’t use the card until it expires (usually within 48 hours), the lien is immediately erased from the account. If you made the virtual card or no longer require it, just “cancel Virtual Card” and the lien will be freed instantly.
- If the IRS suspects you owe taxes, it can place a lien on your bank account. Nevertheless, in order to get the Lien, they must undertake legal processes.
- When the bank discovers funds being used for illegitimate or criminal actions they put a lien on the account.
- A lien might be put on your account as a result of a glitch made by the bank software or a physical error made by the person managing it. In this scenario, you must contact customer service to get the lien lifted.
- In case, one has a loan and a bank account with the same bank, the bank is legally entitled to place a Lien on your bank account if you fail to make your EMI payments.
How can you remove lien in SBI?
You must understand the cause of the lien in order to proceed with removing it.
- If the lien is caused by a virtual card, you can cancel it and the lien will be cleared. Also, the card expires in 48 hours so the lien is instantly lifted.
- A frozen bank balance may prevent you from doing important transactions. Therefore, in order to avoid problems, one should constantly maintain an appropriate balance for lien avoidance.
- You can either renegotiate the conditions with the bank or terminate the card if you have a lien on your Fixed Deposit for your credit card.
- In other cases, when the lien is the result of non-payment of taxes, fees, outstanding loans, etc., you must repay them with interest to resolve the lien.
When can you withdraw the lien amount from SBI?
If you address the issue, you will be allowed to withdraw the amount designated as the lien amount. You can call the bank to confirm the cause and learn how to fix the situation.
Can you get interest on lien amount in SBI?
Yes, the bank will pay interest on the entire amount, including the lien amount. The interest can be withdrawn, but not the lien amount.