Madhya Pradesh High Court orders SBI to unfreeze account, hold only disputed Rs 6,426

The Madhya Pradesh High Court, at its Indore bench, on 15 October 2026 ordered State Bank of India to unfreeze a customer's account that had been frozen over a cyber crime complaint. Only the disputed amount of Rs 6,426.15 is to be kept aside in a fixed deposit. The customer can withdraw even that sum if no order from a magistrate comes within three months.

What Happened

The account holder had asked the court to remove the freeze on the SBI account and the hold on Rs 6,426.15. The court held that two of its earlier rulings on frozen accounts applied here.

Per the order, the disputed Rs 6,426.15 shall be kept in a fixed deposit, and the account shall be unfrozen so the customer can operate it. The fixed deposit may be broken only after orders from the competent judicial magistrate within three months. If that does not happen, the customer may withdraw the amount after informing the police. The court added that if the bank receives a complaint about some other entry, it may act in accordance with law, keeping in mind the government's standard operating procedure (SOP).

The order reproduces an earlier ruling of the High Court that discusses an SOP issued by the Ministry of Home Affairs on 10 April 2026 for grievances over accounts put on hold through the national cyber crime reporting system. Under it, as quoted in the order, the bank uploads a grievance within seven days, the investigating officer decides within 15 days, unresolved cases are escalated to a District Grievance Redressal Officer, and release instructions are to be carried out preferably within 48 hours.

What It Means

For customers whose accounts are frozen because of a cyber crime complaint, the order shows the court limiting the block to the disputed amount and letting the rest of the account be used.

The earlier ruling quoted in the order says the bank is the first point of contact for such a customer and should help start the grievance process rather than simply send the customer to the police. Customers unhappy with how their bank handles a complaint can approach RBI at https://cms.rbi.org.in. Cyber fraud can be reported at https://cybercrime.gov.in or on helpline 1930.

Source: High Court judgment