There are so many banking terms associated with different tasks used in the banking sector. Usually, you may not be familiar with various banking terms unknown to you, such as you may face a situation where you will find a lien Amount in your bank account marked.
In this blog post, we will provide you with detailed, reliable information on what the Lien Amount is in Bank of Baroda, why it is marked, and how to remove it. Just stay with us and keep reading this blog post to explore more profound information on the above subjects. So, without wasting any time, we should now quickly dive deeper into the complete post ahead.
What Is The Lien Amount In Bank of Baroda
When a bank account holder fails to pay taxes, payments, or the loan within the required time and the bank has no other option than to hold/restrict/lock/freeze a specific amount of money available in his/her account, that is not accessible, such amount is known as a Lien/Hold Amount.
The lien amount will remain in the account, but neither it can be withdrawn nor be transferred to another account or can be used anywhere. It will be restricted until the bank authorities decide to remove the freezer/lock from that account. However, there is not any particular time limit for the locked amounts, as the bank authorities have full rights to restrict the account balance and turn it into a lien amount.
Why Is The Lien Amount Marked In Bank of Baroda
Bank of Baroda can mark Lien for various reasons. For example, if you apply for an IPO through your BOB bank account supported by a Blocked Account, the money does not leave your account until you get a confirmed allotment. But, the money in your account is lien-marked from the time you apply for the IPO until the actual allotment is done. However, the lien is removed automatically if you do not get allotment.
Or, if you are unable to maintain the required minimum balance, BOB will charge a penalty. But, if you don’t have a sufficient balance in your account, the bank will mark that account with a specific lien amount.
Or, If a Fixed Deposit is submitted as the security against a loan, then you can not withdraw the Fixed Deposit amount. In any case, the Bank Of Baroda will consider it as the lien amount.
Similarly, there can be so many reasons for the Lien amount marking on BOB bank accounts.
How To Remove The Lien Amount In Bank of Baroda
Suppose your bank account with the Bank of Baroda is lien-marked. You want to remove it. You should understand the reason for the same to remove it. Follow any of these straightforward steps according to your case.
- In case your IPO request is made late and you face this lien account issue, you should withdraw your request by writing to the IPO Registrar.
- When it is a tax lien, you should clear your pending taxes and the penalty amount to remove the lien from your bank account.
- In case your lien is associated with a virtual card, you must delete the card. After that, the lien will be removed right away.
- If you have skipped loan payments, repay them and ask to remove the lien mark from your account.
- In case your account is lien marked due to the unpaid credit card bill, clear it and ask for the termination of the lien.
- Sometimes, your account can be lien-marked due to system errors. In that case, you should contact the BOB executive and ask him to remove the lien mark.
To Wrap Up
In this article, we have discussed what the Lien Amount is in Bank of Baroda, why it is marked, and how to remove it. However, you can quickly check whether the Bank Of Baroda has a lien marked against your account by viewing it in the statement of account so that you can do what is necessary to remove the lien.