ReferIndia News Court Rebukes Bank's Arbitrary Account Freezing

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Court Rebukes Bank's Arbitrary Account Freezing

Published on: May 1, 2026, 11:47 p.m. | Source: Devdiscourse

The Lucknow bench of the Allahabad High Court criticized banks for arbitrarily freezing accounts, emphasizing that banks act as trustees, not investigators. It fined Indian Overseas Bank for freezing an account without justification. The court highlighted concerns over growing arbitrary actions by banks disrupting business and affecting account holders' reputations.

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