Rajasthan High Court orders interim defreeze of accounts blocked over Rs 11 and Rs 1,432

The Rajasthan High Court at Jaipur on 16 October 2026 ordered that the bank accounts of two petitioners be defrozen while their cases are pending. Per the order, the entire accounts had been blocked although the disputed amounts were only Rs 1,432 in one case and Rs 11 in the other.

What Happened

Two account holders, one with IDBI Bank and one with Ujjivan Small Finance Bank, filed writ petitions, which are petitions asking the High Court to enforce legal rights. They told the court that their entire accounts had been frozen without any opportunity of hearing, even though only small disputed amounts were involved. They said the freeze had stopped them from carrying on their commercial activities and from using their money for personal needs.

According to the order, the counsel for Ujjivan Small Finance Bank did not oppose an interim order to defreeze the accounts while the petitions are pending, as the amounts involved were negligible and the entire accounts could not be frozen for them. The court issued notices to the respondents, returnable within three weeks. In the meantime, it ordered that the petitioners' accounts be defrozen and that they be allowed to use them as usual. The court also directed the petitioners to take all precautions so that their accounts are not used for wrongful purposes.

What It Means

This is an interim order, not a final decision. The petitions remain pending, and the court will hear the matter after the notices are answered. For now, the two account holders can use their accounts as usual.

The court also recorded the bank counsel's view that an entire account cannot be frozen for negligible amounts. Customers unhappy with how a bank has handled their account can complain to the bank first and then to the RBI at https://cms.rbi.org.in. Anyone who has lost money to cyber fraud can report it at https://cybercrime.gov.in or call 1930.

Source: High Court judgment