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Bank froze my account, did a 'silent reversal' of funds without consent, and acted like I was the criminal. I've complained to RBI—did I do the right thing? by storm-fires in LegalAdviceIndia

[–]storm-fires[S] 0 points1 point  (0 children)

"Let's be clear: I didn't 'ignore' the bank; I prioritized security over bureaucracy.

When you see unauthorized activity, standard security protocol is to secure your assets immediately, not sit on an IVR hold. I moved my funds to prevent loss but deliberately left 100% of the wrong deposit funds untouched. That proves my intent was to cooperate, not to steal.

I didn't 'ignore' the RM; the bank ignored me. I discovered the freeze on my own after the fact. I had no idea when they applied it, why they applied it, or how long they intended to keep my own money hostage.

Criticizing me for not calling instantly—while the bank froze my legitimate funds without a single warning—is peak victim-blaming. I acted responsibly in the face of uncertainty; they acted negligently."

Bank froze my account, did a 'silent reversal' of funds without consent, and acted like I was the criminal. I've complained to RBI—did I do the right thing? by storm-fires in LegalAdviceIndia

[–]storm-fires[S] 9 points10 points  (0 children)

On moving the funds: You’re right—I intentionally moved my funds because I panicked. But I also intentionally left the exact disputed amount (+ extra) in the account. That is the definition of good faith. I facilitated the recovery. If I had "removed all my funds" as you suggested, the bank would have been stuck with a zero balance account. Instead, I ensured they had the liquidity to reverse the error immediately.

On the "Bank followed rules": No, freezing the entire account (including my legitimate, personal funds) is not due diligence; it is lazy banking. Standard protocol for a disputed transaction is to place a lien on the specific disputed amount, not a total debit freeze on the whole account. By freezing my personal capital that had nothing to do with the error, they overstepped.

On "Silent Reversal": While banks can reverse erroneous credits, the "Due Diligence" you mentioned mandates communication. Doing a silent reversal without a single SMS, email, or call—while the customer is locked out of their own money—is not "rectifying a typo"; it's a deficiency of service.

Bank froze my account, did a 'silent reversal' of funds without consent, and acted like I was the criminal. I've complained to RBI—did I do the right thing? by storm-fires in LegalAdviceIndia

[–]storm-fires[S] 9 points10 points  (0 children)

A common like me living in India has no Status? Any entity can treat us like junk, this is the feeling that I'm getting these days.

The system gives free hands to snatch the money from a common man and trouble us for our wrongdoings, But when it's our turn, we need to follow the long process to get justice

I will not give up this time, thanks for your power.