At Jupiter, we understand that our customers are concerned about frozen bank accounts. We want to clarify why bank accounts may be frozen and what steps you can take to resolve the issue.
Before we begin, we’d like to clarify that Jupiter itself is not a bank and doesn’t hold a banking license. All bank accounts on Jupiter are powered by Federal Bank, an RBI licensed bank. The following information is as per the regulations suggested by Federal Bank and the RBI.
An account gets frozen when our partner bank finds any suspicious activity happening in the account. This freeze is for your and everyone’s safety and security. All banks, by law, are required to monitor their customers’ transactions and report any suspicious activity like Unexplained transactions, Incorrect/invalid documents or details provided at the time of onboarding, and issues relating to money laundering etc.. If a bank suspects such activity on an account, it may freeze the account and report it to the authorities.
If there is unusual activity on an account, such as a large influx of funds, unusual transactions or suspicious activities during account onboarding, the bank may decide to freeze the account until they can investigate and confirm the legitimacy of the activity. For which, the bank expects cooperation from its customers. A bank account may also be frozen if there is a court order, legal judgment, or other legal action that requires the account to be frozen or restricted.
Bank accounts can be frozen due to a law enforcement agency complaint (NPCI, NCCRP, Cybercrime, etc.). In this case, the account cannot be unfrozen by the bank or Jupiter until the customer has resolved the complaint with the concerned authority.
A bank account can also be frozen as a preventive measure to ensure that the customer and platform are safe. Such accounts can be unfrozen on receipt of the necessary documents supporting the transaction/s in question.
When you try to perform any transaction, you may receive a message stating “Your account is frozen.” Additionally, an email communication will be sent to you informing you of the reason for the freeze and the next steps. On Jupiter, this is how the message is shown:
Note – If you have a Minimum KYC account, you are required to complete video KYC as well.
In case of non-remedial reasons, Jupiter CyberCare shall decide to not unfreeze the account. In such a scenario, Jupiter CyberCare team shall suggest the route for account closure, and any outstanding balance in the account will be sent to the user’s alternate account after the closure is completed. However, there are certain cases of fraud, where a closure is not permitted until the concern is resolved.
Similarly, in case of outstanding regulatory complaints on the account, a closure is not permitted and a validation of the No Objection Certificate/unfreeze letter from the investigating authority is required to proceed.
At Jupiter, we always work towards resolving all frozen bank account issues at the earliest. We understand the inconvenience caused to our customers and will ensure that we support you with what is required to resolve it.
Note – Bank accounts on Jupiter are provided by Federal Bank, an RBI-licensed bank. All funds are insured under RBI’s deposit insurance scheme. Jupiter itself is not a bank and doesn’t hold a banking license. Your money is always safe with Federal Bank.