https://www.taxtmi.com/caselaws?id=801837 RBI KYC Directions permit a bank to decline a transaction or account relationship before Customer Due Diligence is complete, but do not authorise a debit freeze after an account has been activated. Prescribed and suspicious transactions must be reported to the Financial Intelligence Unit, and filing a suspicious transaction report cannot itself restrict account operations. Internal transaction thresholds cannot override these directions. A freeze imposed without prior notice and a hearing breaches natural justice, and a later AML flag cannot retrospectively validate it. The debit restriction must be removed and account operations restored. en-us Tue, 06 Oct 2026 00:00:00 +0530 Wed, 28 Oct 2026 07:16:38 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=801837 RBI KYC Directions permit a bank to decline a transaction or account relationship before Customer Due Diligence is complete, but do not authorise a debit freeze after an account has been activated. Prescribed and suspicious transactions must be reported to the Financial Intelligence Unit, and filing a suspicious transaction report cannot itself restrict account operations. Internal transaction thresholds cannot override these directions. A freeze imposed without prior notice and a hearing breaches natural justice, and a later AML flag cannot retrospectively validate it. The debit restriction must be removed and account operations restored. Case-Laws Money Laundering Tue, 06 Oct 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=801837