Urban Money

Lien Amount: Meaning, Reasons and Removal of Lien Mark

Banking is vast, and every associated task has a definite term to make it distinct from other existing ones. Being familiar with every banking term is somehow impossible, but at the same time, you can attempt to have reliable information about the crucial ones. Have you ever come off a situation where you found your bank account lien Amount marked? Did you understand what it stands for or chose to ignore it, as you were unfamiliar with it? 

Well, a minute-to-minute pointer marked on your bank account can significantly impact your transactions. Or maybe you have to pay some penalty for the same. So, rather than ignoring such signs, you must try to grasp certain information about banking terms. 

We are here to make it easier for you and break down the lien amount and how to tackle this term. This guide also includes the steps to remove the lien amount from various bank accounts and how to check for the lien amount. 

What is the Lien Amount?

A Lien amount is the locked or frozen amount available in your account that is not accessible for a specific time frame. Usually, the bank authorities restrict this amount from being used. It will remain in your account, but neither can you withdraw the amount nor transfer it to another account. The lien amount will be frozen until the bank authorities decide to remove the lock from your account. There is no specified limit for the locked amount, as the bank authorities have full rights to restrict the entire bank balance and turn it into a lien amount. 

What is Lien Amount or Lien Marked Meaning?

The next thing to discover when familiar with the lien mount is what the lien mark on a bank account means. A bank account with a lien mark means that the borrower has permitted the lender to do so in accordance with the recovery of money associated with the mutual fund. Typically, bank authorities mark an account lien when the borrower fails to repay the amount per the agreed terms. To recover the loan sanctioned against mutual funds, banks place a lien mark specifying the fund units used by the lender for the security. 

Why is the Lien Amount in Banks?

When you have clarity about the lien amount and the applicability of the lien mark on your bank account, you must get familiar with why there is a lien mark in banks. There could be several reasons to lock an account by marking it a lien account. Some of the important reasons are:

  • Banks have predetermined terms and conditions, and the customer needs to adhere to them. For instance, bank officials ask you to maintain a minimum balance in your bank account. If you fail to do so, you will be charged a decent amount in terms of penalty for not maintaining the specified balance. Additionally, if the account doesn't have a sufficient amount for the deduction, it will be marked as a lien account. 
  • When the account holder has a loan and fails to repay the monthly EMI towards the same, the bank has complete authority to place a lien mark on the account. The lien amount will be equal to the missed EMI towards the loan. 
  • If any of your provided cheques bounce or the bank identifies any issue with the drafts, the bank may mark the account a lien account.
  • The bank will freeze or lock your account if any suspicious activity is detected in your account or associated transactions.
  • The same can happen if you fail to pay taxes on your income.
  • If you secure a loan against your fixed deposit, the amount will be locked, and you will not have access to it. This inaccessible amount is security towards the borrowed loan. The bank authority will mark this specific FD amount as a lien amount restricting you from fund withdrawal.
  • One of the reasons to put a lien on a bank account is credit card dues. 

When you are familiar with the reasons your bank account is lien marked, you must remove it as soon as possible. Get in touch with your dedicated bank relationship manager, raise the concern, ask why, and remove the lien amount from your account. 

How to Remove Lien Amount in SBI?

To remove a lien amount in SBI, you must initially get familiar with why the bank authority placed the lien mark.  

Lien Amount in sbi

Suppose the bank account is restricted by ASBA ( Applications Supported by Blocked Amount) mandated by SEBI for applying for an IPO. In that case, you will have to submit a request for withdrawal to the IPO registrar. However, if you don’t have any urgency, you can wait till the IPO allotment. The lien will be eliminated if you don't receive the allotment for the requested IPO. 

When the SBI bank lien marks your bank account for a virtual card, you can remove the lien right away by deleting the virtual card. You can also negotiate with the bank executive or terminate your card if the lien is associated with your credit card.

For all other cases like non-payment of taxes, skipped EMI towards SBI loan, etc., you will have to pay the default amount and applicable interest to lift the lien. Once you clear your dues, the bank will remove the lien. 

Additionally, the lien mark can be due to any technical or system error. If that is the case, visit the nearest SBI bank branch, and ask the bank executive for the rectification. 

If you don’t have any idea about why the bank has raised the line mark, contact the SBI bank executive and ask for an explanation. 

Additionally, you can make an in-person visit to the SBI bank branch to query about the same. The bank executives will provide the relevant reason and how to resolve the lien mark. 

You can call SBI's 24X7 helpline number to resolve your query. 1800 1234, 1800 11 2211, 1800 425 3800, 1800 2100, or 080-26599990 are the toll free numbers.

How to Remove the Lien Amount in a Kotak Bank Account?

If you are a Kotak Bank account holder and want to remove the lien amount in a Kotak bank account, you will have to start with the root cause. Figure out the reason for which the lien mark exists on your account. 

Lien Amount in a Kotak Bank Account

If your Kotak Bank account is frozen by ASBA and regulated by SEBI towards an IPO request, you must withdraw your IPO to remove the lien mark. If not urgent, wait until the IPO allotment, as the lien mark will be lifted immediately after the allotment. 

When Kotak bank puts a lien mark on your account for a virtual card associated with the bank account, delete the card and remove the lien right away. 

If the lien mark exists towards a credit card, you can either contact the Kotak bank executive or terminate your card to uplift the lien mark.

If the tax department sets the lien amount towards non-payment of taxes or skipped EMIs, repay the default amount, clear the taxes, and remove the lien.

Additionally, your bank account can be lien marked because of a system error. To remove such a lien mark, make an in-person visit to the nearest Kotak bank branch and rectify it.

If you are not sure about the reason behind the lien mark, contact the Kotak bank executive and raise the query for the same. The bank executives will help you know the root cause of the lien mark and help you resolve the problem.  

You can contact a customer care executive to inquire about the lien removal. Make a call on 1860 266 2666 to clear your queries. However, this is not a toll-free number, so local call rates will be applicable. The customer care executives are available from 9 am to 7 pm, Monday to Saturday. 

How to Remove Lien Amount in ICICI Bank?

Unlock the key reason to remove the lien amount in the ICICI bank account. Understand why your account is lien marked and what is the lien amount. If you are already familiar with the key reason, resolve it to remove the lien amount. 

  1. If an IPO request is the reason, withdraw your request. If lien removal is not urgent, wait until the IPO allotment, as the lien will be removed immediately.
  2. Pay your taxes and remove the lien amount if it is a tax lien.
  3. When the lien is associated with the virtual card, delete your card.
  4. If the bank has a lien mark for a credit card, terminate your card.
  5. Clear your dues when the account is lien marked due to skipped payments. 
  6. One reason can be technical errors. Get in touch with the bank executive and resolve your problem. 

You can either get in touch with the executive by calling on the customer care number or can make an in-person visit to the nearest bank branch

The toll-free customer care number of ICICI bank is 1800 200 3344. Get in touch with the customer care executive between 9 am to 6 pm from Mon. to Fri.

How to Remove Lien Amount in HDFC Bank?

If you don’t know why there is a lien mark, speak with your dedicated bank executive. If you visit the bank branch with your account on, you can call the customer care executive via a toll-free number.  

Lien Amount in HDFC Bank

If you know the reason, you can resolve it at your end without getting any rectification from the bank executives. Have a line mark because of credit card dues or skipped payments towards the loan, clear your dues today. Your lien mark will be removed once you clear the pending payments. 

If you haven’t paid your taxes by now, do it today. The reason can be the tax department, as you have lacked tax payments. If you have recently requested an IPO and since you have been lien marked, withdraw it by submitting a request to the IPO Registrar.

The HDFC bank toll-free number to contact the customer care executive is   1800 202 6161 and 1860 267 6161. 

How to Remove Lien Amount in BOB Bank?

If you are a customer of Bank of Baroda and your bank account is lien marked, you can take several steps to remove it. Start by familiarising yourself with the reason for getting the lien marked. Understanding the reason is vital as the method to remove a lien may vary as per the key cause. Here is what you can do to remove the lien amount in BOB bank:

  1. If you have made an IPO request lately and faced this lien account issue, withdraw your request by writing to the IPO Registrar.
  2. Clear your pending taxes and the penalty amount to remove the lien from your bank account when it is a tax lien.
  3. If associated with a virtual card, delete the card, and the lien will be removed right away.
  4. If the BOB has put a lien mark on your account for a credit card, ask for the termination. If you have an unpaid credit card bill, clear it today.
  5. When the account is lien marked due to skipped loan payments, repay them to remove the lien mark from your account.
  6. One reason can be system errors. You can get in touch with the bank executive and ask them to remove the lien mark.

You can contact the executive by calling the toll-free numbers, i.e. 1800 258 44 55 or 1800 102 44 55. Additionally, you can make an in-person visit to the nearest bank branch

No matter in which bank you hold your account, having a lien mark is not suitable because it disrupts the banking transaction from the account. So, if you face any such issues, get in touch with the bank executive to figure out the root cause. Once familiar with the reason, remove the lien mark from your account as soon as possible to reinitiate the transactions.

FAQ's About Lien Amount

Do I get bank interest on the lien amount in SBI?

SBI bank provides interest on the entire amount, including the lien amount. Additionally, you can make withdrawals from the account. However, the restricted amount, i.e. lien amount, will not be available for withdrawal.

How to withdraw the lien amount in SBI?

To withdraw the lien amount in SBI, initially, you will have to remove the lien from your account. Once the bank resolves the issues and the lien mark is terminated, you get the option to withdraw the lien amount.

Is the lien on my bank account considered as bad?

No, the lien on your bank account isn’t considered a bad thing. However, it restricts the transactions and withdrawal of a certain amount, so you must resolve it as soon as possible. 

What is the easiest way of getting rid of the lien amount?

The easiest way to eliminate the lien amount is to rectify the issue by contacting the bank executive or clearing the dues.