Finacle Account Freeze & Unfreeze — AFSM Command, Types & Procedure
- Freeze / unfreeze an account:
AFSM(Account Freeze Setup Menu) - Inquire on freeze status:
AFSM→ Function I, orACLI - Mark / release a lien (amount-specific block):
ALM - Account-level inquiry:
ACLI - Customer inquiry:
CI
A customer comes in to withdraw cash. The teller enters the transaction. Finacle throws: “Account is frozen — debit not allowed.” The customer insists there is no problem with their account. The teller has no idea when the freeze was put on, who put it there, or why. The customer is escalating.
Account freezes are one of those branch functions that rarely come up — until they do, and then everything stops. This guide covers the AFSM command in full: freeze types, who can freeze, the step-by-step process, unfreeze procedure, and the difference between a freeze and a lien. For lien marking using the ALM command, see: Finacle LIEN Marking — ALM Command, Step-by-Step Process & Common Mistakes.
Three Types of Freeze in Finacle
Finacle’s AFSM command supports three freeze types. The type you apply depends entirely on the nature of the instruction — using the wrong type creates compliance problems.
| Freeze Type | What it blocks | When to use |
|---|---|---|
| Debit Freeze | All withdrawals and outward transfers. Deposits and credits are still allowed. | Court order restricting outflows while allowing salary/pension credits to continue. NPA accounts where withdrawals are stopped but the customer can deposit. Garnishee where debits are frozen pending court proceedings. |
| Credit Freeze | All deposits and inward credits. Withdrawals are still allowed. | Less common. Used in escrow arrangements or when regulatory action requires stopping inflows. Occasionally applied to accounts receiving suspicious credits under investigation. |
| Total Freeze | All transactions — both debit and credit — are blocked. | Deceased account (no transactions until succession documents are submitted). Court-ordered complete attachment. Active fraud investigation hold. Regulatory action requiring a full operational stop. |
The AFSM Command — Step-by-Step Walkthrough
Open AFSM (Account Freeze Setup Menu). The freeze process works at the customer level — you select the customer, then choose which of their accounts to freeze.
| Step | Field / Action | What to do |
|---|---|---|
| 1 | Function | Enter F to Freeze |
| 2 | Customer ID | Enter the customer’s CIF number. All accounts linked to this customer will appear on the next screen. |
| 3 | Select accounts | A list of all accounts linked to the customer CIF appears. Select the specific account(s) to freeze. Be precise — freeze only the accounts named in the order. Do not freeze all accounts unless the instruction explicitly requires it. |
| 4 | Freeze Type | Select D (Debit), C (Credit), or T (Total) based on the instruction. |
| 5 | Reason / Remarks | Enter the reference — court case number, order date, authority name. This field is critical for future inquiry. A freeze with no remarks is untraceable six months later. |
| 6 | F10 / Commit | Commit the freeze. It is effective immediately. Any transaction attempted on the frozen account in the blocked direction will now fail with the appropriate freeze error message. |
Who Can Freeze an Account
AFSM is not available to all users. In the Finacle role-permission structure, account freeze is typically restricted to officers at Scale I and above or designated users with explicit AFSM access. Tellers usually cannot freeze accounts.
If you try to open AFSM and get an “Unauthorized” or “Function not available” error, your user ID does not have the role permission. The BM or the officer who received the freeze instruction must perform the action. Do not attempt to use another user’s credentials — request the correct role through your bank’s IT access management process.
How to Unfreeze an Account — Function U
Open AFSM → Function U (Unfreeze) → Customer ID → select the account → select the freeze type to remove → commit.
If the account had a total freeze and you want to partially restore it (for example, allow credits but keep debits frozen), you cannot partially modify a total freeze directly. You must remove the total freeze and apply a debit freeze in its place.
You must have written authority to remove the freeze. A verbal “the order is lifted” from the customer is not sufficient. A phone call from the court clerk is not sufficient. The written release order — addressed to the bank — must be on file before you touch AFSM to unfreeze. The BM must approve. Retain the release order with the original freeze instruction in the legal file.
Court Order Freeze vs Bank-Initiated Freeze
The procedure for applying a freeze differs based on who is ordering it.
| Court / Regulatory Freeze | Bank-Initiated Freeze |
|---|---|
| Triggered by an external written order (court, IT department, RBI, ED, CBI, Police) | Triggered by internal bank decision (deceased account, NPA action, suspected fraud) |
| Must be applied on receipt — typically within 1 working day | Applied at the bank’s discretion with BM / senior management authorization |
| Release requires written order from the same authority that issued the freeze | Release requires internal bank approval at the appropriate level |
| Non-compliance can expose the bank to legal contempt proceedings | Non-compliance is an internal bank process matter |
What a Teller Sees on a Frozen Account
When a teller tries to process a transaction on a frozen account, Finacle shows one of these messages depending on the freeze type and transaction attempted:
- “Account is frozen — debit not allowed” — debit freeze is active; the teller is trying a withdrawal or debit transfer.
- “Account is frozen — credit not allowed” — credit freeze is active; the teller is trying a deposit or inward transfer.
- “Account is frozen — transaction not permitted” — total freeze is active; no transactions in either direction.
In each case, the correct response is: do not process the transaction, do not attempt workarounds, inform the customer that their account has a bank-imposed restriction, and direct them to the Branch Manager. Do not explain the reason for the freeze at the counter — particularly if it relates to a court order or investigation.
Best Practice: AFSM + Memo Note
Marking a freeze in AFSM is necessary but not sufficient on its own. Best practice at any branch is to also create a memo note or alert on the account (using your bank’s memo/alert facility in Finacle) that references the freeze reason, the order details, and who to contact before any action is taken on the account.
This is especially important for court and regulatory freezes. When a new officer joins the branch, or when a teller from a different branch tries to transact on this account, the memo note ensures the freeze reason is visible before any action is taken — not just the freeze error message after an attempted transaction.
Keep the physical order — the original document that triggered the freeze — in a designated legal file at the branch. The Finacle entry is the operational record; the physical document is the legal record. Both must exist.