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Freezing an Account (AFSM)

**********Freezing an Account (AFSM)**********

An account can be frozen in the following cases, viz, Court Order, Garnishee Order, Income Tax/Wealth Tax/Gift Tax attachment, Insolvency, insanity, Dispute between the account holders, death of an account holder, etc.

The freezing can be of three types. Total freeze, Credit Only, Debit Only. Freeze can be done either at the account level, when only the account is frozen or at the Customer Id level, when all the accounts linked to the customer id is frozen.

Menu Option: AFSM - Select ‘F’

* Freezing an Account Step-By-Step

01. AFSM - Enter

02. F - F4 - Reason (F2 to select) - F4

03. Freeze Code (T/C/D) - F4

04. Ac ID - Tab - Move to Remark Field and Enter Remark - F4

05. Press F10

* Verification

01. AFSM - Enter - V - F4

02. A/c ID - F4

03. Press F10 to complete the task

                 **********Unfreeze**********


When it is found necessary to revoke the restriction placed on the account/customer by freeze, then the same is possible by the Menu Option AFSM and selecting the Option ‘U’ for Unfreeze.

The operations in the account can be resumed only after the above is verified by a different user with the requisite powers.

01. AFSM - Enter

02. U - F4 - Ac ID - F4 - Shift+F4 to Select the Account

03. Press F10 and proceed for verification.

**********Death of a Constituent**********

When a customer is reported expired after confirming the news the following steps are undertaken.
  1. If the account is with the survivorship basis (E/S, F/S, Any one of the depositor(s)/survivor(s), the balance belongs to the surviving depositor(s).
  2. If the account is in the form of jointly, the balance is paid to the Nominee named or in its absence to the Survivor(s) jointly with the legal heir of the Deceased.
  3. When the account in the name of a single depositor, on the death of the depositor, the amount is paid to the nominee/legal heir of the deceased.

Since the above process may some time, and it is possible that inadvertently certain operations may be put through the account. Keeping this in view the steps followed by the banks is to

First, freeze the account, since after the death of a constituent the amount belongs to the legal heir. The freezing could be restricted to withdrawals (debits), Deposits (Credits) or total (both debits & credits). Subsequently after the formalities are observed the Banks unfreeze the account and the amount is paid to the Legal heir/ nominee and the account is closed.

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