Finacle LIEN Marking — ALM Command, Step-by-Step Process & Common Mistakes
- Mark / modify / release a lien:
ALM(Account Lien Maintenance) - Inquire on existing liens:
ALMI(Account Lien Maintenance Inquiry) - Account-level inquiry (check available balance):
ACLI - Customer inquiry (full account view):
CI - Account freeze (separate from lien):
AFSM
A customer walks in demanding to withdraw their full balance. The account has ₹2 lakhs. But Finacle blocks ₹1.5 lakhs of it. There is no freeze on the account. The balance shows correctly. The customer is getting angry. You pull up ALMI and see it: a lien marked six months ago for an income tax attachment order. The customer insists the IT matter was settled. But without a release order in writing, you cannot touch that lien.
Lien marking is one of those Finacle functions that looks simple — it is just blocking a balance amount — but carries real legal weight. Mark it wrong and you create a customer complaint. Release it without authority and you create a compliance breach. This guide covers the ALM command in full, the difference between a lien and a freeze, step-by-step procedures for marking and releasing, and the real-world scenarios where you will actually use them.
Lien vs Freeze — The Difference That Matters
These two controls are often confused because they both restrict what a customer can do with their account. They work differently and have different legal implications.
| Lien (ALM) | Freeze (AFSM) |
|---|---|
| Blocks a specific amount of the balance | Blocks a type of transaction (debit, credit, or both) |
| Customer can still transact — up to the free (unlocked) balance | Customer cannot do the blocked transaction type at all |
| Has an expiry date — auto-expires when date passes | No automatic expiry — must be manually removed |
| Multiple liens can coexist on the same account | One freeze status per transaction direction |
| Used for: FD margin, court attachment, IT order, loan security | Used for: deceased accounts, fraud hold, court-ordered full block |
The simplest way to remember it: a lien says “keep this much money locked.” A freeze says “block this type of movement entirely.” For account freeze procedures, see the companion article: Finacle Account Freeze & Unfreeze — AFSM Command, Types & Procedure.
The ALM Command — Step-by-Step Walkthrough
Open ALM (Account Lien Maintenance) to mark a new lien. The command has three functions: Add (A), Modify (M), and Delete (D). To mark a fresh lien, use Function A.
| Step | Field / Action | What to enter / note |
|---|---|---|
| 1 | Function | Enter A to Add a new lien |
| 2 | Account ID | Enter the 15-digit account number on which the lien is to be marked |
| 3 | Press F4 / Go | The lien detail screen opens. If any existing liens are on the account, they will appear here before you add a new one. |
| 4 | Lien Amount | Enter the exact rupee amount to be locked. This must match the figure in the order or instruction you are acting on — do not round up or guess. |
| 5 | Lien Expiry Date | Enter the date the lien should expire. For court orders or IT attachments, use the date specified in the order. For FD margin liens, use the FD maturity date. Do not leave this blank — if left blank or set to a past date, the lien will have no effective end, or may behave unpredictably. |
| 6 | Lien Reason | Select from the dropdown list (see reason codes below). This is an audit field — pick the reason that matches the actual instruction, not a generic one. |
| 7 | Remarks | Enter the reference: court order number, IT demand notice number, loan account number, or CC account number. This is critical for future inquiry — whoever queries this lien in 6 months needs to know why it was marked. |
| 8 | F10 / Commit | Commit the entry. The lien is marked immediately. The locked amount is deducted from the account’s available balance right away — any withdrawal attempt beyond the free balance will now fail. |
Standard Lien Reasons in Finacle
Finacle provides a list of standard lien reason codes. The exact codes vary slightly by bank configuration, but you will typically see these:
| Lien Reason | When to use |
|---|---|
| FDR Margin / Deposit Security | FD (Fixed Deposit) used as margin for a Cash Credit (CC) limit or guarantee. The FD balance is locked to the extent of the credit facility. |
| Loan Security | Savings or current account balance pledged as security for a loan. Used when a liquid security arrangement is part of the loan sanction. |
| Court Order / Attachment | A court has ordered the bank to attach a specific amount in the account. The attachment order will specify the exact amount and duration. |
| Income Tax Attachment | TRO (Tax Recovery Officer) has issued a notice under Section 226(3) of the Income Tax Act instructing the bank to hold the specified amount against tax dues. |
| Garnishee Order | A court decree holder has obtained a garnishee order requiring the bank to hold funds from the judgment debtor’s account up to the decreed amount. |
| Bank’s Own Lien | Bank exercises its right of lien over the customer’s deposit against dues owed to the bank (overdue loan installments, charges, etc.). |
How to Inquire on Existing Liens — ALMI
Before marking a new lien, always check whether the account already has liens on it. This is also the command to use when a customer disputes a balance restriction and you need to explain why their available balance is lower than the total balance.
Open ALMI (Account Lien Maintenance Inquiry) or open ALM with Function I (Inquire). Enter the account number. The screen will show:
- All active liens on the account — amount, reason, expiry date, remarks, and who marked it
- Total lien amount — the sum of all active liens combined
- Available balance — total balance minus total lien amount
An account can have multiple liens simultaneously — for example, an FD lien for a CC facility and an IT attachment lien at the same time. Each lien is tracked separately with its own amount, reason, and expiry. The customer’s available balance is the total balance minus the sum of all active lien amounts.
How to Modify or Release a Lien
To modify a lien (change the amount or extend the expiry date), open ALM → Function M → Account ID → F4. Locate the specific lien record, update the relevant field, and commit.
To release a lien completely, there are two approaches depending on your bank’s configuration:
- Modify to zero: Open ALM → Function M → reduce the lien amount to zero → commit. The lien record remains in history but the locked amount becomes zero.
- Delete: Open ALM → Function D → select the lien → delete. The lien record is removed.
You must have written authority. This means the actual order or notice telling the bank to release the hold. “The customer says it is sorted” is not sufficient. A verbal instruction is not sufficient. Get the written release order, have the BM verify it, and retain a copy on file before touching the lien in Finacle.
Common Mistakes When Marking Liens
1. Not Recording the Expiry Date
The single most common mistake. A lien marked without a proper expiry date — or with an expiry date set far in the future “just to be safe” — will either expire automatically at an unexpected time or remain on the account long after it should have been released. Set the expiry date precisely as per the order or the underlying instrument.
When a lien auto-expires in Finacle, the locked amount is released back into the available balance. If the lien was for a court attachment and it expired before the legal matter was resolved, that money is now available for withdrawal — a serious compliance problem. Check your expiry dates and renew them if the underlying matter is still active.
2. Not Entering Remarks
A lien without a reference number in the remarks field is untraceable. Six months later, when a different officer queries the account, there is no way to know what the lien was for, which order it relates to, or who to contact. Always enter the order number, notice number, loan account number, or CC account number in the remarks field.
3. Confusing Lien Amount with the Required Hold
For an IT attachment order specifying ₹85,000, the lien amount must be exactly ₹85,000 — not rounded to ₹1,00,000 “for safety.” Marking a lien for more than the ordered amount can expose the bank to a customer complaint. If the account balance is less than the attachment amount, mark the lien for whatever is available, note this in the remarks, and inform the appropriate authority.
4. Marking a Lien When a Freeze Is Required
A lien blocks an amount — a customer can still withdraw the balance above the lien. If the instruction is to completely stop all transactions on the account (as is sometimes the case with court orders for deceased accounts or fraud), a lien is not enough. You need an AFSM total freeze. If your order says “no transactions,” use AFSM. If it says “hold ₹X,” use ALM.
Real Scenarios — How Liens Are Used at the Branch
Scenario 1: FD Lien for Cash Credit (CC) Margin
A customer takes a Cash Credit facility of ₹5 lakhs against an FD of ₹6 lakhs. The bank requires the FD as margin security. You mark a lien on the FD account for ₹5 lakhs (or the margin amount as sanctioned), with expiry set to the FD maturity date or the CC limit renewal date, whichever is earlier. Lien reason: FDR Margin / Deposit Security. Remarks: CC account number.
When the CC is closed or reduced, the lien is modified or released proportionately. If the FD matures, the lien must be renewed on the renewed FD.
Scenario 2: Income Tax Attachment — Section 226(3) Notice
A TRO (Tax Recovery Officer) sends a notice under Section 226(3) of the Income Tax Act instructing your bank to hold ₹1,12,450 in the named account against tax dues. You have 5 working days to comply and report compliance back to the IT department.
Steps: Verify the notice is addressed to your bank and branch, confirm the account exists, mark a lien for ₹1,12,450 using ALM (reason: Income Tax Attachment, remarks: TRO notice number and date), report compliance to the TRO, and retain a copy of the notice in the legal file. The BM must be informed and must approve before you mark the lien. Do not respond to verbal instructions — the written notice is mandatory.
Scenario 3: Court Attachment / Garnishee Order
A civil court issues a garnishee order (attachment before judgment) requiring the bank to hold ₹3,00,000 in the defendant’s account. The order will specify the amount, the case number, and the court’s details.
Mark the lien for the ordered amount. Reason: Court Order / Attachment. Remarks: court case number, court name, date of order. If the account balance is less than ₹3,00,000, mark the lien for whatever is available and report this to the court through the legal/compliance team. The branch should not respond directly to court orders without informing the legal department — route it through the right channel immediately on receipt.
Quick Reference — ALM vs AFSM Decision
Use AFSM (Freeze) when: the instruction says stop all transactions or stop all debits/credits — deceased account, fraud hold, total garnishee, regulatory action requiring a full block.
For a full walkthrough of the AFSM command, freeze types, and unfreeze procedures, see: Finacle Account Freeze & Unfreeze — AFSM Command, Types & Procedure.