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Since the digitization of India, the incidence of fraud and scams has risen. Cases of UPI accounts being frozen are now also coming to light. Let us understand what the RBI rules state regarding this.

Nowadays, most people rely solely on UPI for payments; in fact, since the advent of UPI, people have almost stopped carrying cash. Amidst this, instances of UPI accounts being frozen—often due to scams—are emerging. A resident of Kerala recently lodged a complaint regarding such an incident.

What is the full story?

Recently, a Kerala resident named Futumbaka Suma shared a post on the social networking site X (formerly Twitter). In the post, he explained that he received funds twice from an unknown UPI source, after which HDFC Bank froze his account without prior notice. Tagging the Kerala Police in the post, he wrote:

@TheKeralaPolice I’d like to bring to your notice that on the 31st and 4th of August I received two unknown payments via UPI. I did not send it back as I thought it was some scam. When the sender reached out on WhatsApp I did the responsible thing of saying contact your bank and… pic.twitter.com/q7DmCoJAXd

— Alex (@verghesaurus) September 6, 2026

"I wish to bring to your attention that I received two unknown payments via UPI on August 31 and August 4. I did not return the funds immediately as I suspected it might be a scam. When the sender contacted me via WhatsApp, I acted responsibly and asked them to contact their bank, assuring them that I would facilitate the return of the money properly, as I did not want to be part of any scam. Subsequently, HDFC blocked the specific amount and froze my entire account."

He further wrote, "There is a Kerala High Court ruling stating that banks can freeze only the disputed amount, not the entire account. How am I supposed to manage my livelihood? How do I make payments and pay my employees' salaries? I have also emailed the Cyber ​​Cell; their response team was excellent. I am currently recovering from injuries to my jaw and spine." "In such a situation, how can I be expected to visit the bank just to resolve these minor issues?"

What do the rules say?

According to RBI and court regulations, a bank cannot freeze your entire account. The rules stipulate that in such cases, the bank can only place a hold on the disputed amount rather than freezing the whole account, thereby allowing the user to utilize the remaining funds. If a bank freezes your account due to such an issue, you must inform the bank within 24 hours so that the matter can be resolved immediately.