What is Lien Amount SBI? How to remove Lien amount in SBI?

If you see a mark of lien amount in your State Bank of India account or any other bank’s account, then you must know what that lien mark means. Every person should be aware of such important and common terms used by banks. And if you don’t know what lien means in banking, then we help you a bit here to understand what this lien amount and lien amount mark mean in your bank account.

What is Lien Amount or Lien Marked Meaning?

What Is Lien Amount In State Bank Of India Account?

Lien is a type of lock, or you can say the word “Lien” stands for a lock that has been put on your account by the bank. When you talk about lien amount, then you must know what lien amount means? Lien amount is a particular limit that is decided and locked by the bank authorities for a limited period. When the bank froze the amount in your account, you will not be able to do any transaction like withdraw it or use it anywhere until the lock is not removed from your account by the bank. The bank has full rights and authority to lock the account’s entire balance and make it a lien amount.

What Does Lien Marked Mean?

Lien marked means the borrower allowed the lender to take over the mutual fund to recover the money owed if the credit extended to the borrower was not repaid as agreed upon. Loans against mutual funds are secured by a lien mark placed on the mutual fund units being used as security by the lender.

What Is Lien Amount Meaning in Hindi?

लीइन अमाऊंट एक विशेष सीमा है जिसे बैंक अधिकारियों द्वारा सीमित अवधि के लिए तय और लॉक किया जाता है। जब बैंक आपके खाते में जमा राशि को फ्रीज कर देता है, तो आप इसे वापस लेने या इसे कहीं भी उपयोग करने जैसा कोई लेनदेन नहीं कर पाएंगे, जब तक कि बैंक द्वारा आपके खाते से ताला नहीं हटाया जाता।

What Is Lien Amount in SBI?

Lien in SBI or any other bank prevents you from withdrawing or using specified funds in your bank account without the bank’s or concerned authority’s approval. The bank may impose the lien directly or through an authority such as a court or tribunal.

Liens, on the other hand, do not always cause concern. The following section discusses the various reasons for liens in SBI.

IPO Application Using ASBAIf you applied for an IPO using your SBI bank account, SEBI revised the rules a few years ago. In this instance, no funds leave your account until allotment is confirmed. Your money is put on Lien when you apply for the IPO until the actual allotment (or blocked). If you get the allotment, the money goes to the firm. If you don’t get the allotment, the Lien is withdrawn. 
Virtual Debit Card
SBI, like many other banks, offers Virtual Debit Cards. Online transactions are safer with these virtual cards. It is identical to physical cards, except it can only be used for online transactions and has a limited lifespan. SBI puts a Lien on every amount you create a virtual card for. The money is only charged if you use your virtual card to make a purchase. The Lien is automatically eliminated if you don’t use the card for 48 hours. If you created the virtual card and no longer required it, “cancel Virtual Card” to remove the Lien.
Non-Payment of Credit Card Dues: 
If you have not paid your credit card dues, the bank may place a lien on your account.
Lien By Tax Department
The IRS can put a lien on your bank account if it believes you owe taxes. However, It must follow legal procedures to obtain the Lien.
Technical Problem
A technical error in the underlying software or a human error can result in a lien on your account. To eliminate the Lien, contact customer service or the branch.

Reasons why bank puts a lock on accounts

There could be thousands of reasons a bank would lock a customer’s account by making it a lien account and the lien marking. Some important reasons are:

  • Each and every bank has some terms and conditions regarding maintaining a minimum balance in the account. If the account holder failed to do so, then he could get charged a decent amount as penalty charges for the non-maintenance. Bank automatically deducts these charges and when the amount is not sufficient in the account then the bank puts a lien on the account.
  • When the account user is not able to pay the EMI or loan repayment on time then the bank can place a lien on their account equivalent to the EMI or loan amount.
  • If the bank found any issues with Cheques or Drafts then the bank may put a lien on the account.
  • If banks find any type of suspicious activity on the bank account then they can freeze your account and can put a lien on the account.
  • In case, if you failed to pay taxes then the bank may put a lien on your account.
  • If you deposited an FD as security for a loan then after that that you will be unable to withdraw any amount from the FD as the bank will be putting a lock or marking that FD amount as a lien amount.
  • Credit card dues can be a reason for lien amount in SBI

How to remove Lien amount in SBI Online?

Although the way to remove lien amount in SBI varies for the reason lien marking is added to your account, I am going to try to explain how one can clear the lien amount in SBI.

It is essential to understand the reason for the Lien Amount in SBI since it will help us plan the next steps on how to remove the lien amount in SBI.

If your account is encumbered owing to ASBA and you want the lien lifted immediately, you must submit a withdrawal request to the IPO’s registrar. If you can wait, the lien will be eliminated if you do not receive an IPO allotment. As a result, they will cancel your bid and instruct the SCSB (Self-certifies Syndicate Bank) to release your funds.

If the lien is the result of a virtual card, you can delete the card and the lien will be lifted right away. The card will expire in 48 hours, and the lien will be automatically lifted.

You can either negotiate the terms with the bank or cancel the card if you have a lien on your Fixed Deposit for your credit card.

In all other cases, when the lien is the result of non-payment of taxes, fees, outstanding loans, etc., you must pay them back with interest in order to remove the lien.

The lien will be removed from your bank account once you have completed the needed accomplishments.

If you are unsure, contact your bank, and the bank will explain why they placed a lien on your bank account and how you can resolve it if relevant.

Lien Due to IPO SB

When your account and the amount in it are declared or marked as lien account and lien amount, you cannot do anything using that amount and account. Unless you settle all your bank dues, that bank is not going to normalize your account again. Until then, you will not be able to do any transaction like withdrawing the amount or issuing cheques; if you do, it will get bounced.

Once you pay all the dues at the SBI branch, the bank will remove the lien mark from your amount or account. Most likely, to get rid of this issue, you need to visit the branch and ask about the whole procedure. That will be a good idea to do it with ease.

You can also get help from the bank’s customer care helpline by calling them and enquiring about the issue. They will help you for sure, but always remember that you cannot remove the lien amount mark from your amount without settling the due payments of your account.

How to Unlock Lien Amount in SBI?

What Is Lien Amount In State Bank Of India Account?
How One Can Get Back The Lien Amount In SBI?

If the bank’s lien amount mark on your account is put by the bank due to any system error or any minor mistake, you can visit the bank’s branch and ask them to solve the issue and query about the issue. The bank will be happy to help you as soon as possible, and the bank will remove the issues and remove the lien amount mark from your account.

It is not suitable for any customer or bank account holder at SBI or any other bank to mark their account as a lien amount because it will disrupt the transaction from that particular account. And suppose you fail to pay the penalty amount from that particular amount. In that case, it will be automatically deducted from another of your account from the same bank if you have another. And that is going to help in money drainage.

Suppose you are thinking of or going to deposit the money in your account as a security deposit against any fixed deposits from the same account. In that case, you should ensure that the bank has not marked your account or amount as a lien account or amount. And as you already know, the bank holds all the rights and authority to mark any account and any amount as a lien amount, so you must not want to break any of the bank’s laws and cause trouble for yourself. As they say, “Precaution is always better than cure.”

Frequently Asked Questions

1. how to withdraw the lien amount?

The account holders will not withdraw the locked amount unless the bank removes the lien or lock from their account. However, you can contact your branch to apply for a withdrawal of a lien with genuine reason.

2. What is the meaning of lien or Lien Balance in Hindi, Tamil, and Telugu?

The meaning of Lien in Hindi is “ग्रहणाधिकार,” and the meaning of Lien Balance is “ग्रहणाधिकार राशि.”

What Is The Meaning Of Lien Balance Tamil?

The meaning of Lien Balance in Hindi Tamil is “உரிமைத் தொகை.”

What Is The Meaning Of Lien Balance Telugu?

The meaning of Lien Balance in Hindi Tamil is “తాత్కాలిక మొత్తం.”

Conclusion

That’s all one should know about the lien amount or lien account in SBI or any other bank. I hope this article will help you in case of any trouble. And if you won’t know anything else crucial regarding this issue, feel free to tell us in the comments. Your feedback is valuable to us. Thanks for reading.

12 thoughts on “What is Lien Amount SBI? How to remove Lien amount in SBI?

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  1. My sbi account no. 10823981028 Has lien amount of rs. 53,459/- I have balance to be pay my loan premium rs 53,459/-. Kindly remove my lien amount.

  2. I have lien amount of 6200 but I have talked in my branch he told that here it is not fault . I have updated my kyc also .

    Please help me for this .
    Some one is sending money but In my account I am showing 0 balance

  3. I transferred money to my Friend’s Lien marked account unknowingly. He is not able to pay the EMI loan he has taken through bank. How can I retrieve my money back from my Friend’s account?

  4. Lien amount of Rs. 1860 is standing in my Account 11071477456 from a longtime. Kindly unlock this amount as soon as possible.

  5. Sir i kept one gold to Bank and then take loans to Bank We not paid in that now I will clear my loan with my marked lien amount it was happening clear or not