Bank Savings Accounts Frozen

[Suba]

Many of us have savings accounts at more than one bank, each with a different purpose. Some accounts are specifically used for daily transactions, retirement funds, emergency funds, etc. However, in my country, starting August 1, 2025, a government regulation will come into effect that any dormant account, or one that has been inactive for three months, must request an unfreeze or block, even if the balance is not lost. This includes local currency savings, foreign currency savings, and checking accounts for both individuals and companies.

Furthermore, the government will freeze accounts suspected of criminal activity, such as hacking or money laundering.
How are savings accounts treated in your country? Are account freezes allowed?

 

[Stardom22]

For me l have never heard something like that in my country. Saving accounts are treated just normally for sure.

 

[eLdavis]

I think it makes sense though they are simply trying to regulate things, that by the side over here accounts are not frozen for just three months of not being active.

 

[Springtime]

In our city, instead of government freezing the account, each bank has the authority to freeze an inactive account.

 

[Trush Jodie]

Any person holding a savings account should do some transaction on the he account at least once in three months. Why would an account be dormant for three months?

 

[Starmix]

I think it's not supposed to be the government to freeze a depositor's account it's the bank through the mandate of the Central Bank. It's also a case to case scenario. A bank can only freeze an account as per order by the court if the account holder is a convicted politician for doing money laundering.

 

[aninditasen]

Many of us have savings accounts at more than one bank, each with a different purpose. Some accounts are specifically used for daily transactions, retirement funds, emergency funds, etc. However, in my country, starting August 1, 2025, a government regulation will come into effect that any dormant account, or one that has been inactive for three months, must request an unfreeze or block, even if the balance is not lost. This includes local currency savings, foreign currency savings, and checking accounts for both individuals and companies.

Furthermore, the government will freeze accounts suspected of criminal activity, such as hacking or money laundering.
How are savings accounts treated in your country? Are account freezes allowed?

In India if you don't use an account for long it gets deactivated which can be renewed by depositing some amount of money into the account.

 

[Suba]

In India if you don't use an account for long it gets deactivated which can be renewed by depositing some amount of money into the account.

It's easy to activate a frozen savings account by simply making a deposit, but in my country, we have to contact a government agency and fill out a form, which is a lengthy process.

 

[Augusta]

Sure, criminals savings as account are always frozen and I like it to help detected others from such activities

 

[Min George]

I know that frozen accounts can always be unfrozen at anytime. But the process could be stringent to complete.

 

[Starmix]

Accounts here subjected to freeze are usually from politicians and high ranking military officials whose assets and bank deposits are questionable. This simply means they are under investigations and court hearings.

 

[aninditasen]

It's easy to activate a frozen savings account by simply making a deposit, but in my country, we have to contact a government agency and fill out a form, which is a lengthy process.

In India the bank has the right to do that.

 

[Suba]

That's true. Although the government claims accounts can be reopened, the process will be complicated, especially for people living in rural areas with low education and no internet access. Their balances will be lost. Many people have protested, and I myself have protested through social media, urging the government to stop this policy.

 

[Stardom22]

That is why l like to have a single business account whereby it becomes very easy for one to manage that account.

 

[Augusta]

Yes you just need to have a bank account that you can easily managed and that's how to run it