A Kerala man's bank account was frozen by HDFC Bank after he received two unknown UPI payments totaling ₹6,000 and chose not to return them. According to reports from Mint, the payments were made on August 31st (₹2,000) and September 4th (₹4,000) by a PhonePe user named Puthumbaka Suma. The account holder, who is of Malayali descent, suspected the payments were part of a scam and refused to return the money through proper banking channels.
The incident highlights important customer protection rules regarding bank account freezes. As reported by Mint, Kerala High Court rulings state that banks can no longer freeze entire accounts due to disputes over specific amounts, ensuring account holders retain access to their funds. The ruling specifically directs banks to exercise their right of lien only over the specific disputed amounts, leaving the rest of the account balance accessible to the customer. The practice of freezing entire accounts for disputes involving relatively minor sums is considered unjust and disruptive to financial stability.
According to Mint reports, the account holder received assistance from HDFC Bank branch managers including Shaji Thomas, Abey Joseph of Manarcad branch, and Suhas Aitwade of the HRBR layout branch. He revealed that his account was unfrozen and the disputed amount was being held under lien pending appropriate process. The customer emphasized the importance of contacting banks directly for transaction verification rather than attempting private resolution through messages or phone calls.
The incident serves as a cautionary tale for banking customers facing similar situations. As reported by Mint, the customer advised against transferring money back solely based on messages or phone calls, recommending that customers contact their banks for proper verification and reversal processes. He emphasized that it is safer to let the banking system resolve disputed transactions than attempt private resolution, particularly when dealing with unexpected payments from unknown sources.
