Cyber fraud has become a daily reality in India. To control rising digital crimes, police and banks now act fast and sometimes too fast. Thousands of honest people wake up one morning to find their bank accounts frozen, without warning, explanation, or fault. Salary stops, EMIs bounce, rent gets delayed, and daily life collapses.
This article explains why accounts get frozen, what your rights are,and how you can get your account unfrozen step by step.
Why Are Bank Accounts Frozen in Cyber Fraud Cases?
When a cyber fraud happens, police track the money trail. If any amount passes through your bank account even unknowingly the system flags it. The cybercrime unit then directs the bank to freeze the account to prevent further movement of funds.
In most cases, the account holder is not involved in the fraud. Still, suspicion becomes the basis for action, at least initially.
Legal Basis for Freezing a Bank Account
Police rely on Section 106 of the Bharatiya Nagarik Suraksha Sanhita (BNSS), earlier known as Section 102 of the Code of Criminal Procedure (CrPC) to freeze accounts linked to suspected offences. Banks are legally bound to comply. RBI guidelines also mandate cooperation with law-enforcement agencies.
However, the law permits freezing only to the extent necessary for investigation. It does not authorise punishment without proof.
Freeze vs Lien: What Is the Difference?
This distinction is crucial but often ignored.
- Account Freeze :- No debit and no credit allowed. The entire account becomes unusable.
- Lien Marking :- Only the disputed or alleged fraud amount is blocked. The remaining balance can be used.
Courts increasingly favour lien-only blocking instead of blanket freezing, especially when the account holder is not an accused.
The Real Problem: Entire Account Gets Frozen
Legally, police should block only the alleged fraud amount. In practice, many cyber cells freeze the entire account, ignoring income sources, balances, or personal hardship.
This causes serious damage :-
- Salaries remain stuck.
- Medical and household expenses stop.
- Small businesses collapse.
- Innocent people suffer without hearing.
Rights of an Innocent Account Holder
You do not lose your rights merely because your account is frozen.
You have the right to:
- Know why the account was frozen.
- Receive a reasonable hearing.
- Seek partial de-freezing.
- Protect your livelihood and basic expenses.
Courts have repeatedly held that an investigation must not destroy an innocent person's life.
Immediate Steps After Your Account Gets Frozen
Act fast and stay calm.
- Visit your bank branch and request :-
- Written Reason for Freezing.
- Amount flagged in Cyber Fraud.
- Name of Police Station or Cyber Cell.
- FIR or Complaint Reference Number.
- Do not rely only on customer care calls. Written communication matters.
Documents You Should Prepare
Keep these ready before approaching authorities :-
- Aadhaar Card/ PAN.
- Bank Statements. (Last 6–12 months)
- Salary Slips or Business Records. (For Business)
- Explanation of the Disputed Transaction.
- Any proof showing no role in the fraud.
- Affidavit.
Clear paperwork speeds up resolution.
How to Approach the Cyber Crime Police Station
Many cases involve interstate jurisdiction. The complaint may originate from another state.
You should :-
- Send a polite email explaining your situation to the official email of the concerned police station.
- Attach all relevant documents.
- Request partial de-freezing or lien-only action.
- Follow up with calls if required.
Remain firm, respectful, and factual.
Applying for Partial De-Freezing (Lien Only)
You can request authorities to :-
- Block only the alleged fraud amount.
- Release the remaining balance.
- Allow salary credits and withdrawals.
- Protect essential living expenses.
This approach aligns with legal principles and judicial rulings.
Role of the Bank in Unfreezing
Banks do not decide independently; they act strictly on police instructions.
However, you can :-
- Submit a written request through the branch.
- Use the bank's grievance redressal mechanism.
- Escalate to the RBI Banking Ombudsman if the delay persists.
Documentation always strengthens your case.
When Court Intervention Becomes Necessary
If police or banks ignore justified requests, judicial intervention is an option.
Available remedies include :-
- Application before the jurisdictional Magistrate.
- Writ petition before the High Court under Article 226.
Courts often order :-
- Partial de-freezing.
- Protection of salary accounts.
- Time-bound investigation.
Judges consistently recognise that over-freezing harms innocent citizens.
How Long Does the Process Take?
There is no fixed timeline, but :-
- Police responses usually take 2 to 4 weeks.
- Court relief may come faster with proper representation.
- Regular follow-ups reduce delays.
Silence often leads to stagnation.
How to Avoid Account Freezing in the Future
- Do not accept unknown transfers.
- Avoid acting as a "temporary receiver" of funds.
- Report suspicious credits immediately.
- Maintain clean and transparent transaction records.
Prevention is always better than legal struggle.
Conclusion: Need for Balance and Clear Guidelines
Cybercrime control is essential. But blind account freezing devastates honest citizens. Authorities must follow proportionality, ensure basic hearings, and issue clear SOPs.
Until that happens, awareness remains the strongest protection. Knowing your rights can save your livelihood.
If your account gets frozen, do not panic - act, document, and assert your rights.
Sample Application to Police for Unfreezing Bank Account in Cyber Fraud Case
Below is a sample application that can be submitted to the Police In-Charge / SHO / Cyber Crime Cell for partial de-freezing (lien only) of a bank account frozen in a cyber fraud investigation.
To
The Police In-Charge / Station House Officer
Cyber Crime Police Station / Police Station
___________ District, ___________ State
Subject: Request for Partial De-freezing (Lien Only) of My Bank Account
Respected Sir/ Madam,
I respectfully submit that my bank account bearing Account No. ___________, maintained with ___________ Bank, ___________ Branch, has been frozen pursuant to instructions issued by your office in connection with an alleged cyber fraud transaction.
As informed by my bank, the freezing has been carried out due to a suspicious or disputed transaction that passed through my account during the course of investigation. I respectfully state that I am not an accused or suspect in the said matter, nor have I had any intentional or conscious involvement in the alleged cyber offence. The said transaction was received unknowingly and without any fraudulent intent.
Due to the freezing of my entire bank account, I am facing severe hardship, as my regular income/salary/business receipts and essential expenses such as rent, EMIs, medical expenses, and household needs have been completely disrupted.
I respectfully submit that under Section 106 of the Bharatiya Nagarik Suraksha Sanhita (BNSS) (earlier Section 102 CrPC), freezing of a bank account is permitted only to the extent necessary for investigation. Blanket freezing of the entire account, despite no direct involvement, causes disproportionate hardship and violates principles of fairness and proportionality.
In view of the above, I humbly request that :-
- Only the disputed/alleged amount may kindly be lien-marked, if required for investigation.
- The remaining balance and normal banking operations may kindly be restored.
- Essential withdrawals may be permitted during the pendency of the investigation.
I assure your good office of my full cooperation in the investigation and undertake to provide any information or clarification as and when required.
I therefore request your kind consideration and early relief in the interest of justice.
Thanking you,
Yours faithfully,
Name: ___________
Address: ___________
Mobile No.: ___________
Email ID: ___________
Bank Name & Branch: ___________
Account Number: ___________
Enclosures :-
- Copy of Aadhaar / PAN
- Bank Statement
- Explanation of Disputed Transaction
- Any Other Relevant Documents
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