Summary of this article
Lien removal does not ensure all linked risks are cleared
Check mandates and standing instructions to avoid future debits
Obtain written proof and monitor RBI complaint for closure
A recent social media post shared on Reddit has pointed out how a banking issue can seem to have been resolved, but can leave key risks unaddressed. A user, posting under the username Complete_Diver_3478, shared that a lien of Rs 19,00,000 on their account was removed by State Bank of India (SBI) after they approached the Reserve Bank of India (RBI) Ombudsman. However, the user said the bank did not respond to concerns about an unauthorised standing instruction linked to the account.
The post states that the lien was placed to recover a loan that the customer alleged was not theirs. The bank notified the customer of the lien being removed by emailing him after he had filed a complaint through the grievance redressal system of RBI and submitted legal arguments. The customer confirmed that the money was available once again.
Nonetheless, according to the user, the complaint on RBI portal did not go past the first stage and the bank did not give any written confirmation on whether the standing instruction to auto-debit had been cancelled. The user also reported that there was no communication about compensation due to the inconvenience or so-called harassment.
Why Lien Removal Might Not Be The Last Step
A lien on a bank account limits the use of funds, usually as security against a liability. Its deletion reinstates access, but does not necessarily indicate that all the associated mandates or flags on the account have been cleared.
Where an auto-debit or standing instruction has been established, the mandate may continue to be in effect even where the lien has been lifted. Otherwise, these mandates may allow future debits without new authorisation. This is especially applicable in cases of loan recovery where systems may have been set up to make automatic deductions periodically.
How To Check Standing Instructions And Mandates?
Net banking or mobile banking platforms allow customers to check whether there are active mandates. A majority of banks have a list of standing instructions, e-mandates or auto-debit registrations. Any unfamiliar or unauthorised mandate must be flagged immediately.
You should also seek written assurance from the bank, stating that all the related mandates have been cancelled. This works as a record that can be referred to in the event of any dispute in the future. Moreover, customers can look at the recent transaction histories to make sure that there are no unforeseen debits.
How To Monitor Complaint Status?
When a complaint is submitted to the RBI Ombudsman, it undergoes a specific process which involves submission, review and resolution. When the status does not change in spite of the intervention of the bank, the customers will be able to follow the updates on the portal and request clarification.
When a bank informs the complainant that it has solved the problem, the complainant is usually offered to accept or reject the solution. Rejecting a resolution may lead to further examination of unresolved aspects, such as pending clarifications or compensation claims.
How To Ensure That The Matter Is Fully Closed?
Despite funds being fully reinstated, customers can choose to formally close the issue by addressing any concerns raised. This can be done through obtaining written replies to the challenged activities, confirming the cancellation of mandates, and determining if the issue is satisfactorily sorted out through RBI’s system.
Try to keep the copies of emails, references of complaints, and account statements, which may help to create the clear timeline of the events. This may prove to be important in case the problem recurs or needs to be escalated.
Note, this information is based on a community post shared on reddit, and has not been independently verified.
