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Submit your complaint →A Pune-based startup, Momentum Sports, faces unexplained freezing of ₹50,000 in its HDFC Bank current account and an additional ₹35,000 frozen in ICICI Bank after transfer. The entrepreneur, Mr. Sumit G, reports unprofessional behavior from bank staff and demands RBI intervention for resolution.
Complaint Summary
| Particulars | Details |
|---|---|
| Complainant Name | Sumit G |
| Company Name | Momentum Sports, Pune |
| Bank Name | HDFC Bank |
| Branch Name | Karve Nagar, Pune |
| Account Type | Current Account (Startup) |
| Account Duration | 18 months |
| Amount Frozen (HDFC Bank) | ₹50,000 |
| Amount Frozen (ICICI Bank) | ₹35,000 (Transferred from HDFC) |
| Date of Issue | Since January 2025 |
| Nature of Complaint | Account funds frozen without reason |
| Concern Raised Against | HDFC Bank Karve Nagar Branch |
| Complainant’s Designation | Business Partner at Momentum Sports |
| Complainant’s Concern | Lack of transparency, rude behavior, and no technical or legal justification for freezing funds |
Full Complaint Details
Mr. Sumit G, Business Partner at Momentum Sports Pune, has raised a serious complaint against HDFC Bank Karve Nagar Branch for freezing ₹50,000 from his startup’s current account since January 2025 without any valid explanation or notice.
The complainant has been maintaining an operative account with HDFC Bank for over 18 months, yet since January, the entire clear balance has been held up, leaving his business unable to make payments or operate smoothly.
In addition, a payment of ₹35,000 transferred to a vendor’s ICICI Bank account was also frozen by ICICI, and neither of the banks could provide a reason or official justification for this freeze.
The complainant states that despite multiple visits to the Karve Nagar Branch, the response from staff particularly a lady Assistant Manager has been arrogant and dismissive. The issue remains unresolved, and no internal investigation or technical clarification has been shared by the bank.
This situation has caused severe operational difficulty for the startup and has raised concerns about transparency, accountability, and banking ethics.
Possible Reasons for Account Freezing
While the complainant reports no valid reason shared by the bank, generally, banks may freeze accounts due to:
- Suspicious or flagged transactions under PMLA (Prevention of Money Laundering Act)
- KYC or PAN/Aadhaar discrepancies
- Pending or mismatched compliance updates
- Mistaken regulatory alerts or system errors
- Mandates from investigating authorities or cybercrime cells
However, if no official communication or notice is shared by the bank, it may amount to deficiency in service under the Consumer Protection Act, 2019 and violation of RBI guidelines on customer rights.
Steps to Resolve Account Freezing Issues
- Write to the Branch Manager & Nodal Officer
Submit a written complaint demanding the reason for freezing the account. Attach account statements and any previous correspondence. - Escalate to HDFC Bank’s Grievance Redressal Cell
- Email: grievanceredressal@hdfcbank.com
- Nodal Officer: Contact via https://www.hdfcbank.com/personal/help-support/nodal-officer-details
- File a Complaint on RBI Ombudsman Portal
If no action is taken within 30 days, file a grievance at:
🔗 https://cms.rbi.org.in - Send a Legal Notice to the Bank
Demand written justification for freezing funds under Section 171 of the Indian Contract Act, 1872 and RBI Master Circulars on Customer Service. - Escalate to Consumer Forum
If mental harassment or financial loss is proven, approach the District Consumer Disputes Redressal Commission for compensation.
Applicable Legal Remedies
| Issue | Authority / Law | Relief Sought |
|---|---|---|
| Unexplained freezing of funds | RBI Ombudsman (CMS Portal) | Investigation and fund release |
| Mental harassment by bank officials | Consumer Forum (CPA, 2019) | Compensation |
| Technical/system error leading to loss | Banking Ombudsman Scheme | Refund or penalty to bank |
| Possible cyber alert or error | Cyber Crime Portal | Clarification or clearance |
| Deficiency in service | Consumer Protection Act | Damages and interest recovery |
Complaint Filing Templates
1. Sample Email to HDFC Bank Nodal Officer
Subject: Request for Immediate Resolution – Account Frozen Without Reason
Dear Sir/Madam,
I am writing regarding the freezing of ₹50,000 in my current account (Momentum Sports Pune) since January 2025. Despite multiple visits and follow-ups, no reason or written explanation has been provided.
Additionally, a payment of ₹35,000 to a vendor (ICICI Bank) has also been frozen. Kindly share the reason in writing and initiate an immediate resolution.
Regards,
Sumit G
Business Partner – Momentum Sports Pune
2. Sample Complaint to RBI Ombudsman
To:
The Banking Ombudsman,
Reserve Bank of India
Subject: Complaint Against HDFC Bank – Unexplained Freezing of Current Account
Dear Sir/Madam,
I wish to raise a complaint against HDFC Bank, Karve Nagar Branch, Pune, for freezing my startup’s current account without providing any reason or notice since January 2025.
This has caused financial losses and disrupted business operations. Please investigate and direct the bank to unfreeze the amount and compensate for the delay.
Sincerely,
Sumit G
Momentum Sports Pune
How Choice4Voice.com Can Help
At Choice4Voice.com, we help small business owners, startups, and entrepreneurs like Mr. Sumit G get their grievances addressed when banks remain unresponsive.
We assist by:
- Drafting and escalating complaints to RBI and Consumer Forums
- Publishing verified cases for public visibility and awareness
- Guiding in legal documentation and ombudsman filing
- Ensuring corporate accountability through transparency
If your bank has wrongfully frozen your funds or ignored your grievance, you can submit your complaint at Choice4Voice.com for professional publication and legal guidance.
Frequently Asked Questions (FAQs)
Q1. Why can a bank freeze an account without notice?
As per RBI norms, banks must provide written intimation unless directed by legal or enforcement authorities.
Q2. What can I do if my account is frozen for no reason?
You can raise a written complaint and escalate it to the RBI Ombudsman if not resolved within 30 days.
Q3. How long can a bank freeze funds?
Only until the reason is resolved or cleared by internal compliance or investigation departments.
Q4. Can I claim compensation for loss caused by frozen funds?
Yes, through the Consumer Forum under deficiency of service.
Q5. Is RBI Ombudsman free of cost?
Yes, there are no charges for filing a complaint.
Q6. What documents should I attach while filing an RBI complaint?
Bank statement, complaint copy, and written communication from the bank.
Q7. Can the bank freeze vendor accounts too?
Only if the transaction is flagged as suspicious or linked to an ongoing investigation.
Q8. How do I check if my account is under regulatory review?
Ask the branch manager or submit a written RTI to the bank.
Q9. What happens if the bank fails to respond even after RBI notice?
RBI can direct the bank to unfreeze funds and impose penalties.
Q10. Can Choice4Voice.com help with RBI complaint filing?
Yes, Choice4Voice.com provides templates and personalized guidance for ombudsman escalation.
Q11. Can system errors cause fund freezing?
Yes, sometimes CBS (Core Banking System) mismatches lead to account blocking, which must be resolved internally.
Q12. Is it legal for the bank to not inform customers?
No, withholding reasons violates RBI’s customer service guidelines.
Q13. How can I escalate internally in HDFC Bank?
Step 1: Branch → Step 2: Grievance Redressal Officer → Step 3: Principal Nodal Officer.
Q14. What if bank staff behave rudely or arrogantly?
You can include this detail in your RBI Ombudsman complaint under “misbehavior by bank staff”.
Q15. Can such cases impact startup operations?
Yes, it may affect vendor payments, payroll, and credibility.
Q16. Is there any RBI circular on freezing accounts?
Yes, RBI Master Direction on “Know Your Customer (KYC)” lays out procedures for account restrictions.
Q17. What if the bank cites “technical error”?
Request written confirmation and timeframe for resolution.
Q18. Can I withdraw partial funds?
Not unless the bank unfreezes the entire balance.
Q19. Can I go to media or publish online?
Yes, sharing verified complaints on Choice4Voice.com raises awareness and accountability.
Q20. Can legal notice help?
Yes, a formal legal notice often compels banks to take action quickly.
