Find about Lien amount meaning in Banking industry and detailed reasons behind it to keep under Lien amount by the banker with or without notice…
Banking is now the majority adopted criteria by every individual and businessmen for their financial transaction. Every amount which is being credit or debit form an account is firmly listed in the Bank account statement of that particular customer. In some cases, the statement brings the fund which started as Lien Amount.
The Amount is not among any of the credit or debit from the account holder, but it is something else form the Banker. This not restricted to private banks or government banks, but it is with all banks to have the Lien column added. Here in this article 25penny will come across the details of the Lien Amount.
Lien Amount Meaning
The amount which started as Lien, is the fund which being frozen by the Banker. These amounts cannot be withdrawn or even used by the customer, until the Lien has removed. Bank has the authority to apply Lien on a portion of the fund or on the entire account.
Reason for Lien Amount
There are numerous reasons based on which the Lien Amount will put by the Bank. Let us come across each of them in detail and let us know how you can save yourself with these Lien.
Minimum Balance Recruitment
The Lien Amount set by the Bank, if the customer has non-compliance with the minimum balance requirement. Almost every bank has got some criteria on minimum balance and thus if the said minimum balance not marinated, the bank does penalize. The bank will deduct the penalty amount once the customer adds any funds to their account to clear the dues or else if the minimum balanc not maintained, then the account will set to lien.
Loan against Fixed Deposit
One of the majorly seen Lien in one’s account who have maintained the fixed deposit. In case the fixed deposit fund used against the Loan from the Bank. After that the bank gets the entire fund under the Lien criteria. Customers will not able to use these deposited amounts until the Loan tenure has completed.
EMI Delay or Bounced Amount
In case if you have bounced payment or non-payment of EMI, then the account of the customer will set to Lien. Bank has authority to set the other accounts of customers on Hold, if there none-payment of bounced money made from one of their accounts in the same bank. This is to have security towards the due payment as per the bank’s rules.
Cheque or Draft Deposit
In case if the Cheque or Draft Despite by you has set into compline, then the fund form your account will set to lien. These Lien Amount will only released, once the Cheque or Draft issue has fully resolved. Also proper funds have transferred.
Bank has authority to set Line on Amount, when they feel that the account transactions have into suspicion or unlawful. In case if the customer has been under non-payment of taxes. Then their account will set to lien until full payment paid.
Error by Bank
In recent days, the banking system is fully online and there are numerous mistakes that software make. In such scenario, customers have to worry as the bank sets the Lien Amount until their software issue resolved.
Lien Amount by Customer
If you’re having trading account, then customer can utilize the option of lien to set minimum balance. In case if you’re subscribing for an IPO, then the customer can set the line on a particular amount. Such that when the IPO allocated, you will have enough funds.
- Can I use a debit card to withdraw a Lien Amount?
Any amount which is set as Lien will be blocked temporarily and will be avoided to use by Debit card, online fund transfer or for any bill payment. This customer cannot use the Lien Amount, by any means of the transaction until the restriction is released.
- How to free the Lien Amount?
Customers can reach the Bank branch or contact the customer service executive, to know about the details of Lien Amount. If required, the customer has to clear the dues or make payment for their EMIs to remove the Lien of their account.
- Will the Bank apply charges on the Lien Amount?
The bank will not change the Lien Amount of your bank account, if the lien has been set due to repayment of EMI or Cheque clearance or any loan EMI, then the bank deducts the applicable charges on the amount and releases the remaining amount from the Lien.