The Calcutta High Court has dismissed a petition submitted by Trinamool Congress MP Abhishek Banerjee, following the reactivation of his bank account along with his debit and credit cards after he provided the necessary KYC documents to a private bank. This decision was made on August 24, 2026, during a hearing where Banerjee’s legal representation informed the court of his intentions to travel abroad for medical reasons.

Banerjee’s application was filed in response to the freezing of his bank account and the blocking of his cards, which occurred on August 10, the same day the Supreme Court granted him permission to undertake his trip. His lawyer argued in court that this freeze had severely impacted Banerjee’s ability to manage his finances.

Justice Observations on KYC Procedures

During proceedings, Justice Krishna Rao made remarks regarding standard bank protocols for KYC compliance. He indicated that banks should initially issue a notification requesting the necessary information before taking drastic measures, such as blocking a customer’s cards. The Justice suggested that a block should only follow if the customer consistently failed to provide the needed documents despite multiple requests.

The case underscored the importance of adhering to due process in banking operations, especially in situations involving customer accounts. Justice Rao highlighted the need for banks to follow established procedures to safeguard customer interests while managing compliance with regulatory requirements.

Banerjee’s lawyer, Ayan Bhattacharjee, pointed out that under Reserve Bank of India (RBI) guidelines, a bank is permitted to partially freeze an account only under certain circumstances, typically when the customer neglects to comply with KYC requirements after numerous reminders. This stance aimed to clarify the legal framework within which banks operate regarding customer KYC compliance.

Bank’s Justification and Case Closure

The bank’s representation asserted that they acted appropriately and according to RBI guidelines. The bank’s counsel emphasised that the motivation behind seeking additional KYC documents was not harassment but rather compliance with regulatory standards. Furthermore, the bank maintained that it had implemented necessary precautions due to high-risk factors, which had resulted in Banerjee’s account being flagged and subsequently blocked based on third-party data.

During a previous hearing on August 20, the bank’s lawyer had noted that Banerjee’s details were associated with cases initiated by the Enforcement Directorate, which highlighted the background context of the situation. This connection raised concerns regarding the risk profile associated with his account, leading to the precautionary measures taken by the bank.

As the court confirmed that the bank had reactivated Banerjee’s account and cards once he furnished the KYC documentation, it marked the conclusion of this legal matter. The court’s closure of Banerjee’s petition highlighted the resolution of the immediate issue, enabling him to proceed with his planned travel and continue with his financial activities undisturbed.

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