How Long Does It Take To Unfreeze Bank Account and 6 Genuine Reasons of freezing the account

How Long Does It Take To Unfreeze Bank Account

How Long Does It Take To Unfreeze Bank Account- To see what account unfreeze means, let us see what account freeze means. Freezing an account is a temporary restriction placed on a person’s account by the bank.

How Long Does It Take To Unfreeze Bank Account

Restrictions placed on the account by the bank, the account holder’s transactions are restricted or the transactions are completely stopped. That means the account holder cannot make transactions on his account. A bank can freeze one’s account for various reasons. The bank has the same rights.

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Reasons of freezing the account

1. An account is frozen if legal action is taken against it.
2. A bank can freeze an account if it suspects fraud.
3. If an account is being investigated by the government, the bank account is frozen.
4. If there is any misbehavior in an account transactions, the account is frozen.
5. If the account requirements are not fulfil, the account may be frozen.
6. An account can be frozen if a person does not pay taxes.

When an account is frozen, no deposit or withdrawal can be made on such account. Individuals cannot issue checks or make electronic transfers from the account. Only the account holder is allowed to view the account balance. After completing the necessary steps to unfreeze the account, the bank unfreezes the account of the respective account holder.

How long does it take to unfreeze a bank account?

First, the account holder should ask the bank for the reason for freezing the account. A frozen account can last as little as an hour or as long as weeks or even months.

1. Suspected fraud –

If the account is frozen due to fraud, the account can be unfrozen after showing the necessary documents.

2. Legal Action—

If an account is frozen by legal action taken by the court, it may take two weeks or more to unfreeze it.

3. Money Laundering—

If the rules and conditions regarding money laundering are not followed on an account, the account holder should submit the necessary documents to the bank to unfreeze it. After verifying these documents, the bank unfreezes the account.

4. Non-payment of tax –

If a person does not pay tax, the bank can freeze the account of such person or freeze the amount equal to the amount of tax. After paying this tax, the bank automatically unfreezes the account.

How Long Does It Take To Unfreeze Bank Account

How to unfreeze the account-

You can unfreeze your frozen account by following some steps to unfreeze the account.

1. You can contact your bank and ask the reason for the account freeze either by phone, email or by physically visiting the bank.
2. After knowing the reason behind the account freeze then account holder can unfreeze his account by taking appropriate steps.
3. You can unfreeze your account by going to the bank taking the account unfreeze form and giving the required documents, or by doing KYC of the account.
4. According to the rules of many banks, the account holder goes to the bank and submits a written request to unfreeze the account. In this application, the account holder’s name, account number, and information about why the account has been unfrozen are asked. After filling out such form the bank unfreezes the account after proper verification

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Documents to unfreeze the account

The reason for which the account is frozen determines when it will be unfrozen. If the reason behind freezing the account is normal, then the account can be unfrozen within a day or a couple of hours.

However if the account is frozen due to legitimate reasons or fraud, it may take a week or month to unfreeze the account. Normally KYC of the account holder is done to unfreeze the account. An Aadhaar card, PAN card, and photo of the account holder are required documents from the account holder.

Sometimes the bank takes a written application from the account holder to unfreeze the account or sometimes additional documentation such as proof of identity or copy of court order may be required.

Conclusion –

Generally, the bank unfreezes the account as soon as possible after the account holder submits the appropriate documents to bank. After checking the reason for which the account is frozen. This may take two to five days or sometimes even a month. It may take time for you to unfreeze the account depending on your reason.