RBI proposes 60-day cap on bank holds for suspicious transactions
The RBI is shaking things up: banks may soon have to place temporary debit holds on suspicious transactions or, in exceptional circumstances, entire accounts, with an overall 60-day cap unless a competent authority directs otherwise.
This move follows a Supreme Court push for fairer, faster ways to handle suspicious transactions, so people aren't locked out of their money for too long.
Banks may use AI monitoring systems
Banks could use transaction-monitoring systems, which may include AI and machine-learning tools, to flag suspected transactions of ₹1,000 or more.
You'll be told why the hold was imposed, and you'll have 20 days from the date of the hold to submit an explanation or justification.
Respond in time and the bank must decide within 10 days; if you don't reply, they get 30 days.
The bank would refer the matter to the jurisdictional police authority through the NCRP-CFCFRMS.
The draft rules could take effect from 1 April 2027, but banks can start earlier if they want, and you can share your feedback until October 2, 2026.