Bank account frozen suddenly? Check why it happened, how to unfreeze it and recover your money

Imagine receiving money in your bank account from an unknown person, only to discover later that the transaction is linked to cybercrime proceeds. Such situations can result in a debit freeze, restricting account holders from withdrawing or transferring money.

A debit freeze prevents outgoing transactions, including ATM withdrawals, UPI payments, internet banking transfers and card payments, while allowing incoming deposits.

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However, account holders affected by such restrictions now have two mechanisms to seek relief: the Money Restoration Module (MRM) and the Grievance Redressal Mechanism (GRM). These processes provide a structured way to raise complaints, submit supporting documents and seek the release of frozen funds or restoration of banking services.

How to get your bank account unfrozen through GRM?

Contact your bank: Approach your bank and request the removal of the debit freeze, release of the lien or restoration of digital banking services.

Register a complaint: Submit a formal grievance through the prescribed complaint channel.

Verification of the complaint: The bank and designated police or grievance officers examine the complaint and the circumstances surrounding the suspicious transaction.

Escalate the matter: If you are not satisfied with the response, you can approach district and state-level grievance officers.

Attend a joint meeting: Depending on the case, a meeting may be organised involving the investigating officer, bank representatives and the account holder.

Wait for the final decision: The complaint is examined within defined timelines. Directions may subsequently be issued to remove the lien, unfreeze the account and restore banking facilities.

How to recover frozen money through the Money Restoration Module (MRM)?

The process involves the following steps:

Approach the National Cybercrime Reporting Portal (NCRP): Raise a request for the restoration or interim custody of the disputed amount.

Verification of funds: The amount held in the bank account is examined to establish its connection with the reported transaction.

Submit an application: Provide the necessary application and supporting documents for the restoration of the funds.

Police or court examination: The matter is taken up through the appropriate police or judicial process, depending on the circumstances.

Investigating officer's review: The investigating officer examines the transaction trail and records the findings.

Present your explanation: The account holder gets an opportunity to explain the transaction and submit documents supporting the legitimacy of the funds.

Joint meeting, if required: A meeting involving the police and bank officials may be arranged to examine the matter.

Final decision: The competent authority decides whether the disputed money should be returned to the cybercrime victim or released to the account holder.

Delhi Police receives thousands of requests under GRM and MRM

The two mechanisms have received a significant number of requests from people seeking relief from restrictions on their bank accounts.

According to the figures shared by Delhi Police, as of October 19:

Grievance Redressal Mechanism (GRM): Delhi Police received 5,833 requests since the end of April, of which 4,820 had been disposed of.

Money Restoration Module (MRM): A total of 17,336 requests were received, with 15,077 cases resolved.

These mechanisms aim to provide relief to genuine account holders who may face financial difficulties after unknowingly receiving money connected to cyber fraud.

[With TOI inputs]