Bank Account Frozen by Cyber Cell? The New 2026 SOP for Grievance & Unfreezing
One of the most distressing situations for a business or individual is discovering that their bank account has been frozen without warning. Often, this is a collateral effect of a cybercrime investigation where funds from a fraud have inadvertently passed through your account.
Until recently, unfreezing these accounts was a legal nightmare involving indefinite delays. However, the Ministry of Home Affairs (I4C) Standard Operating Procedure (SOP) of January 2, 2026, has introduced a structured Grievance Redressal Mechanism that protects innocent account holders.
Why Was My Account Frozen?
Under Section 168 and Section 94 of the Bharatiya Nagarik Suraksha Sanhita (BNSS), police can direct banks to "put on hold" funds suspected to be proceeds of crime. If a fraudster transfers money to Person A, who transfers it to Person B (you), your account may be frozen as part of the "money trail," even if you are a legitimate merchant or seller.
The New 2026 Remedy: A Time-Bound Process
The 2026 SOP explicitly states that freezing powers should not harass legitimate citizens. It introduces a defined workflow to challenge the freeze.
Step-by-Step Guide to Unfreezing Your Account
Step 1: Approach Your Bank (Day 1-7)
Do not panic. Your first step is to visit your bank branch.
- KYC Verification: Submit updated KYC documents to prove your identity and address.
- Transaction Proof: Provide invoices, bills, or chat history justifying the specific transaction that was flagged.
- Request: Ask the Nodal Officer to verify your "bona fides" and raise a grievance on the CFCFRMS Portal. The bank is mandated to do this within 7 days.
Step 2: Police Verification (Day 8-23)
Once the bank uploads your grievance, it triggers an alert to the Investigating Officer (IO).
- The IO must verify your details (often via Video Conference).
- The IO is legally required to decide on unfreezing or continuing the hold within 15 days of receiving the grievance.
Step 3: Escalation to District Officer
If the Investigating Officer does not act within the 15-day window, the system automatically escalates the matter to the District Grievance Officer (usually a senior police official) for immediate review.
The Game Changer: The "90-Day Rule"
The most critical protection in the 2026 SOP is the sunset clause. If the police do not provide a specific lawful order (like a court order or formal seizure memo) to continue the hold within 90 days of your grievance being raised, the bank is instructed to remove the hold automatically (after giving a 15-day notice to the police).
This prevents accounts from remaining frozen for years due to police inaction.
What If The Police Refuse to Unfreeze?
If the police insist on keeping the funds frozen because the investigation is ongoing, you have two legal remedies under the SOP:
- Interim Custody (Indemnity Bond): Under Section 106(3) BNSS, the IO can release the funds to you if you sign an Indemnity Bond, promising to return the amount if the court later demands it.
- Court Application: You can file a petition under Section 503 of BNSS before the Magistrate to seek a judicial order for release.
How We Assist in Cyber Law Matters
While the SOP outlines the process, effectively communicating with banks and law enforcement requires precise legal representation. We assist clients by:
- Drafting formal legal representations to the Bank Nodal Officer.
- Coordinating with Cyber Crime cells to present evidence of legitimate transactions.
- Filing writs or petitions in High Court if the 90-day procedural safeguards are violated.
Legal Assistance for Frozen Accounts
For professional guidance on navigating the SOP provisions, you may schedule an appointment with our office.
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