Kotak Mahindra Bank Debit-Froze My Savings Account Without Notice – Can I Claim Compensation for Lost Opportunities?

Hey Redditors, I’m facing a frustrating situation with Kotak Mahindra Bank, and I’d like your advice or input on whether I can take action against them. Here’s the issue: Kotak froze my savings account citing “transaction mismatch,” claiming that I might have been doing commercial transactions in my account. But here’s where it gets ridiculous: 1. **They are not ED or the Income Tax Department.** How can a bank freeze someone’s account at their own discretion without proper authority or due process? It’s not like they have judicial or investigative powers to seize assets arbitrarily. 2. **No prior notice was given.** If they suspected something, the least they could have done is serve me a notice asking for supporting documents. Something like, “Please provide an explanation or we’ll freeze your account.” Instead, they just randomly blocked my account without any warning. Now, the kicker: this account was linked to my Zerodha account, and I used it for applying to IPOs and swing trading. During the time my account was frozen, I missed out on several opportunities, which has potentially cost me a lot of money. I believe their actions: \- Violate the **RBI’s Fair Practice Code** (banks are required to treat customers fairly and follow due process). \- Go against the **principle of natural justice** as per the Constitution (everyone should have the right to be heard before such drastic action is taken). **My question is:** Can I claim compensation for the lost opportunities during the time my account was frozen? Has anyone else faced a similar issue, and if so, how did you handle it? Looking forward to hearing your thoughts and experiences.