Are you a customer of State Bank of India? Do you have an account with this bank? Therefore, you must be aware of the banking terms used by the banks for specific account owners like a savings bank account, current bank account, and others. To be an instance, it is not only for the SBI all bank uses some terms like “Lien amount”
Now, let’s have a look in deep. Do you know the meaning of the Lien account? Why does it occur, and what could be the procedure to remove the lien amount from the account? In this article, we have added everything that you need to know about the lien amount in SBI.
What is the Lien amount?
Lien stands for the lock that has been put into your account balance. It means the particular account balance is locked by the bank.
In simple words, the account holder cannot withdraw or use the bank account balance unless the lock gets removed.
Why a lock-in in my bank account balance? What could be the reasons for the lien amount?
The Bank puts Lien to the bank account balance for several reasons. Some of them we have added below.
- Some banks have the proposal of maintaining minimum balance in their bank account. When the customer gets failed to maintain the minimum balance in their bank account then the bank automatically deducts the penalty charges for not maintaining the minimum account balance. However, if the customer does not have sufficient funds in their account then the bank puts a lien in their account.
- If you had deposited any fixed deposit under the security of any bank loan, then you cannot withdraw the particular amount in any case as the bank puts a lien in that amount.
- The bank can put a lien if the customer failed to make the repayments of the loan.
- The bank can put a lien in the case of cheques or bank drafts.
- If the bank finds any unlawful activity in the bank account, then the bank has the right to put a lien in that bank account balance.
- You can check the faqs at SBI official website.
Further Read: SBI Share Price Target 2025
How one can clear the lien amount?
One needs to clear all the dues that are pending with your bank account. For example, SBI. If you are a customer of State Bank of India, you need to clear all the pending dues that you had held with the bank.
Once the amount gets settled with the bank. The lien amount will get automatically removed from your bank account. You can also contact the customer care of any perspective bank for the same.
However, you cannot clear the lien for the fixed deposits you had made against any loan until you make the full repayments.
Conclusion
Here we come at the end. Lien amount is the lock in the bank account balance that is held by the bank due to non-payment or not maintenance of minimum balance in the bank account. However, one can quickly clear the lien amount by clearing all the pending dues one is having with the bank.
In this article, we have added all the details that one needs to know about the lien amount in SBI. If there is anything that is not understandable then feel free to ask us in the comments section.
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