The Calcutta High Court has disposed of a petition filed by Trinamool Congress MP Abhishek Banerjee following the restoration of his bank account and payment cards by a private banking institution. The court closed the matter after receiving confirmation that the accounts were reactivated once the lawmaker submitted required verification records.
Banerjee, who represents the Diamond Harbour constituency, had challenged the bank’s decision to freeze his account and block his debit and credit cards. The legal resolution comes as the parliamentarian prepares to travel overseas for medical treatment later this week.
Judicial Remarks on Banking Procedures
During the hearing, Justice Krishna Rao verbally noted that financial institutions ought to serve prior notice requesting Know Your Customer updates before restricting customer cards. However, the court also observed that banks maintain the right to block services if a client persistently fails to submit requested information after notification.
The petition was officially concluded after Banerjee provided the necessary documentation directly to a representative from the bank at his residence.
Automated System and High-Risk Flagging
Legal representatives for the bank stated that the institution acted in accordance with Reserve Bank of India guidelines and had no intention of causing harassment. Counsel explained that an automated central system had triggered the account block based on third-party data after identifying high-risk parameters. An email notification was subsequently dispatched to the customer requesting supplementary documentation.
During an earlier hearing on Aug. 20, the bank’s counsel informed the court that Banerjee’s name, mobile contact details, and Permanent Account Number were associated with proceedings initiated by the Enforcement Directorate.
Timeline and Regulatory Guidelines
Banerjee’s lawyer, Ayan Bhattacharjee, stated that the financial restrictions were imposed on Aug. 10, coinciding with a Supreme Court order granting the MP permission to travel abroad for medical care.
Bhattacharjee argued that Reserve Bank of India regulations require banks to implement account freezes gradually through partial restrictions, and only after a customer fails to comply with multiple reminders.
