When a small transaction freezes an entire bank account

Restored from Instagram posts · 28 October 2023

if you're having an account in federal bank, or any of its neobanks like Jupiter or Fi, (largely popular in Kerala)

all it takes for someone to freeze your account is for someone who is flagged to deposit as low as 1 INR.

you could be part of an investigation and the bank will freeze your entire account.

the bank will then ask you for an NOC from cybercrime and the cybercrime will be from Delhi. good luck getting your NOC there with your entire accounts freezed.

recently RBI has strictly warned banks to not freeze above the unit of rupees transacted that are marked for investigation instead of the entire account. since banks don't have auto provision for this, expect the implementation to take some time.

[a source gap: the specific RBI instruction needs its circular number and date. this account of complaints should not be read as a statement of the rules that apply to every bank or investigation today.]

and don't send NGOs or someone suspicious money from your account especially if it's from a federal Bank entity.

you are at risk. be warned. have seen and analysed 100+ complaints on this.

100s of similar messages. it's pitiful that some were flagged and entire account was blocked for a meagre 76 INR.

please do the needful. be careful when you're transacting.

or take extra measures when you're transacting with UPI.

one of my account is particularly dedicated towards UPI alone. all inward and outward transactions of UPI happen only in that account and it never has a balance outside of satisfying minimum balance and what you'd need for transacting in UPI.

it helps by de-risking my account, helps keep main accounts from being noted and in a better way helps me take out UPI transactions separately so that my CA doesn't strangle me.

(ask any CA. they hate UPI transactions. they recommend transferring a bulk amount to a wallet and use from there) - lol

personally, i have started reducing UPI behavior. calculate expenditure per week, withdraw cash. i am moving towards cash. more mindful expenditure than just digits getting out of your hands. mindless expenditure reduced considerably (idk if it's due to a behaviour change)

the fact that this problem is so evident and so many people are affected and no one knows safe practices in personal banking,

and troubles in fraud and impersonation has increased with AEPS (aadhar enabled payment system) heavily and

youtube media/news channels are sitting comfortably making videos interviewing the hyena in a movie shows where their 'journalistic' preference and priorities lie.

:(((