In recent times, numerous instances of bank accounts freezing due to suspicious transactions have been reported. These issues often arise from receiving money from dubious sources. To safeguard your finances, it’s crucial to follow some strategic steps. Here are three key methods on how to save bank account from freezing:
1. Create a Separate Bank Account for Online Transactions and Set it as the Default Account in UPI Apps to save Bank account from Freezing
One effective way to save your bank account from getting frozen is by setting up a separate account solely for online transactions. This dedicated account should be used for both sending and receiving money online. Here’s why this is important:
• Isolation of Transactions: By isolating your online transactions from your main account, you minimize the risk of affecting your primary savings or business funds. If any issues arise with the online account, your primary account remains untouched.
• Easier Monitoring: With a dedicated account, tracking online transactions becomes simpler and more straightforward. You can quickly identify any suspicious activity.
• Setting as Default in UPI Apps: Make sure to set this dedicated bank account as the default account in UPI apps like Google Pay, Paytm, and PhonePe. This will ensure that all your online payments and receipts go through this account, reducing the risk of mistakenly using your primary account.
Ensure that any funds received come from legitimate sources. Additionally, avoid peer-to-peer (P2P) crypto transactions, as these are often flagged by banks due to their high risk of being associated with fraudulent activities.
2. Utilize the Digital Rupee
The Indian government has introduced the digital rupee, a new form of currency that operates differently from traditional bank balances. This innovative approach provides several advantages:
• Reduced Freezability: Funds received in the form of digital rupee are not as easily reportable or freezable as traditional bank funds. This provides an added layer of security against potential freezes.
• Government Endorsem*nt: Being a government-backed currency, the digital rupee is considered safe and reliable. It offers a modern alternative to conventional banking, especially for those frequently dealing with online transactions.
• Ease of Use: The digital rupee can be used seamlessly for transactions, much like any other digital payment method. Its integration into everyday financial activities is straightforward and user-friendly.
By opting to receive payments via digital rupee, you can add an extra layer of protection against account freezes. This method can be particularly useful for those who frequently deal with online transactions.
3. Establish a Merchant Account
Another effective strategy to save Bank account from Freezing is to create a merchant account. These accounts are designed for businesses and come with specific benefits that can help protect your finances:
• Higher Transaction Limits: Merchant accounts typically allow higher transaction limits, making them ideal for businesses that handle large volumes of transactions. For instance, you can set a transaction limit of twenty lakhs per year per QR code.
• Enhanced Security: Merchant accounts are generally considered more secure and less prone to issues of suspicious activity. Banks often monitor these accounts closely, ensuring a safer transaction environment.
• Compliance Benefits: While exceeding the twenty lakh limit might require you to comply with GST regulations, staying within this threshold allows for smoother operations without additional compliance burdens.
It is important to acknowledge that it is not always in our control who sends us money through our phone number without asking us directly. Hence, it becomes crucial to remain vigilant and take proactive measures to safeguard our financial accounts. Here’s how you can manage unsolicited transactions:
• Monitor Your Accounts Regularly: Regularly check your bank accounts for any unexpected transactions. Promptly reporting any suspicious activity to your bank can prevent further issues.
• Inform Your Bank: If you receive an unsolicited transaction, notify your bank immediately. They can help you understand the source and take necessary actions to protect your account.
• Use Transaction Alerts: Enable transaction alerts on your bank account and UPI apps. These alerts can help you stay informed about any incoming or outgoing transactions, allowing you to act quickly if something seems off.
By implementing these steps, you can significantly reduce the risk of your bank account being frozen due to suspicious transactions. Staying vigilant and taking proactive measures is essential in today’s digital age to safeguard your financial health.
It is important to reiterate that this article focuses on safeguarding your bank account from any mishappenings. It does not encourage any type of suspicious activity. Everyone should avoid suspicious transactions altogether to maintain the integrity and security of their financial accounts.
