Lending your bank account and it's consequences!

[Bitcoin Smith]

In our country, it is a very common practice among friends, family members and relatives to lend our bank account to receive their money in our accounts and let them withdraw with ATM cards. Which is the issue I wanna address today after reading a bank freeze story on other platform.

People involved in p2p trading know the risks of bank freezes which often happens due to receiving funds linked with an illegal/unauthorized transfer from someone's bank account so months after we done trades just on a random day our bank accounts, credit/debit cards, internet banking will be inaccessible and when we contact the branch their response will be cyber crime ordered them to. Once we are at this stage it almost 99% that there's no going back and since we can't identify who send the funds so the primary suspect will be us to avoid being in the situation we should avoid trading p2p especially when they offer 12% or 20% over the market rate.

Now coming back to the topic, there are chances that someone can take advantage of their ignorance and trade couple of times and withdraw their money immediately but after months they will receive bank freeze and all their money will be under hold indefinitely so we should create awareness about this among our friends and family circle about not lending our bank accounts to anyone and even by the bank terms it's solely for personal usage and all the legal liability comes under the responsibility of the account owner alone.

[TheUltraElite]

I dont know how prevalent this is, but this is something I personally would never do and neither would I ask someone to do it. Its highly dangerous as to what sort of money that can come in or what they are going to use it for even if they are trusted enough family.

When it comes things like money where crime and fraud are happening as we speak, you can only trust yourself.

[pawanjain]

In our country, it is a very common practice among friends, family members and relatives to lend our bank account to receive their money in our accounts and let them withdraw with ATM cards. Which is the issue I wanna address today after reading a bank freeze story on other platform.

People involved in p2p trading know the risks of bank freezes which often happens due to receiving funds linked with an illegal/unauthorized transfer from someone's bank account so months after we done trades just on a random day our bank accounts, credit/debit cards, internet banking will be inaccessible and when we contact the branch their response will be cyber crime ordered them to. Once we are at this stage it almost 99% that there's no going back and since we can't identify who send the funds so the primary suspect will be us to avoid being in the situation we should avoid trading p2p especially when they offer 12% or 20% over the market rate.

Now coming back to the topic, there are chances that someone can take advantage of their ignorance and trade couple of times and withdraw their money immediately but after months they will receive bank freeze and all their money will be under hold indefinitely so we should create awareness about this among our friends and family circle about not lending our bank accounts to anyone and even by the bank terms it's solely for personal usage and all the legal liability comes under the responsibility of the account owner alone.

Any huge deposits we have in our bank accounts will come under the radar of the IT department.
If the funds are received from an illicit source then the chances of our bank accounts getting frozen are high.
These two are enough reasons why we should not get money in our bank accounts for somebody else.

Even if we are getting it for ourself, I would suggest maintaining a separate bank account for trading purpose. This will eliminate first level bank account freeze.
Chances of getting all the bank accounts related to same PAN card are low but it can happen if there is a huge fraud involved.
So stay cautious when you are dealing with INR trades and only trade with reputed traders and avoid falling for cheaper price.

[Bitcoin Smith]

I dont know how prevalent this is, but this is something I personally would never do and neither would I ask someone to do it.

It is very common, infact people accept money from a complete stranger in front of ATM because someone approach us and ask us to give the money that we are going to deposit there and they will send it to our bank account and the most common reason from them is they forgot to ATM card or it's not working in the particular machine so please help, and people over 40s will not see as a threat in anyway and accept it but it has serious consequences if the person has wrong intentions.

Even if we are getting it for ourself, I would suggest maintaining a separate bank account for trading purpose. This will eliminate first level bank account freeze.

This is just a minimum security but can be helpful on various situations especially for someone who deal with small amounts so their chances of freeze all their bank account is minimal.

[avikz]

I am not sure how common it is in India but personally I will not allow lending of my bank account to receive funds for anyone. I can do it for my parents probably but before that I will ensure that the funds are legit. Definitely not for anyone else no matter how close they are to me.

I have been approached by a shop keeper in my locality a couple of times asking me to give him cash against an UPI payment but I declined every single time and stopped going to his shop thereafter.

In India, it will take years for you to prove your innocence. So it's always better not to indulge in any such sort of things.

[pawanjain]

I am not sure how common it is in India but personally I will not allow lending of my bank account to receive funds for anyone. I can do it for my parents probably but before that I will ensure that the funds are legit. Definitely not for anyone else no matter how close they are to me.

I have been approached by a shop keeper in my locality a couple of times asking me to give him cash against an UPI payment but I declined every single time and stopped going to his shop thereafter.

In India, it will take years for you to prove your innocence. So it's always better not to indulge in any such sort of things.

I usually avoid it but there are two close friends of mine for whom I do get amount in my bank account and give them the money.
Since they are very close friends I am not sure how to deny them. I have tried saying it adds up in ITR and I might ge in trouble.
But they be like since you are salaried and the amount is not much so it won't really matter.
I need a solid reason which I can use to deny them. I don't want to be in unnecessary trouble.

[TheUltraElite]

I need a solid reason which I can use to deny them. I don't want to be in unnecessary trouble.

Tough situation you got yourself in. You have to learn how to say "No" - without actually saying No on their face to avoid being called rude.

Delay is the first method. Not picking up calls is the next, when you do pick then up be slouchy and say you were outside or phone was silent. Keep delaying and eventually they will get frustrated. But it is tough to do this when they are close.

Ultimately you will fall in trouble so you have to be strict at one point.

[pawanjain]

But it is tough to do this when they are close.

That's the point right. It would have been very easy for me to say no (as I am good at saying NO straight to the face) but if they are so close to me then that is where the problem lies.
Delaying their calls or not picking up their calls is really not an option. Is there something I can say from taxation perspective ?
I have tried saying it once that it will show in my ITR but they were like it will be a credit and then a debit transaction so it won't matter and all.
What do you think?

[Bitcoin Smith]

Is there something I can say from taxation perspective ?
I have tried saying it once that it will show in my ITR but they were like it will be a credit and then a debit transaction so it won't matter and all.
What do you think?

Yeah, savings accounts are supposed to be only used for the personal needs and when you are using it to help your friends still those transactions will be recorded under your name so you are liable for whatever the taxation incurred because of it.

You can ask them directly why not use their own bank account? If they don't have then it's very easy we can open bank account with e-KYC on kotak and HDFC like banks in like 5 minutes over the internet and the KYC will be valid for a year and in that time we can visit any of their branch to complete the physical verification.

You can also introduce them to wallets like Amazon pay, Mobiwik where they can load balance for spending on UPI so they don't need to connect with their banks everytime.

[Parvati_j]

In our country, it is a very common practice among friends, family members and relatives to lend our bank account to receive their money in our accounts and let them withdraw with ATM cards. Which is the issue I wanna address today after reading a bank freeze story on other platform.

People involved in p2p trading know the risks of bank freezes which often happens due to receiving funds linked with an illegal/unauthorized transfer from someone's bank account so months after we done trades just on a random day our bank accounts, credit/debit cards, internet banking will be inaccessible and when we contact the branch their response will be cyber crime ordered them to. Once we are at this stage it almost 99% that there's no going back and since we can't identify who send the funds so the primary suspect will be us to avoid being in the situation we should avoid trading p2p especially when they offer 12% or 20% over the market rate.

Now coming back to the topic, there are chances that someone can take advantage of their ignorance and trade couple of times and withdraw their money immediately but after months they will receive bank freeze and all their money will be under hold indefinitely so we should create awareness about this among our friends and family circle about not lending our bank accounts to anyone and even by the bank terms it's solely for personal usage and all the legal liability comes under the responsibility of the account owner alone.

Op thank you for this information, but its a shame how someone you know and helped with your bank could do such evil to you after showing him kindness. Sometimes it's good to play the wicked friend to safe guard you life and property than trying to be too generous which may lead you to problems. Well I have learnt enough from this thread i have give out my account in previous times to friends to receive money, but I think that ends today so I dont get into trouble.

[JSRAW]

I dont know how prevalent this is, but this is something I personally would never do and neither would I ask someone to do it. Its highly dangerous as to what sort of money that can come in or what they are going to use it for even if they are trusted enough family.

When it comes things like money where crime and fraud are happening as we speak, you can only trust yourself.

I feel that this is true for only Desi people and didn't notice such behavior in other demographics with ofc rare exceptions.

One of the major reasons I could think of is that we have no personal boundaries per se and let's be honest, most of the time we were broke af or living hand to mouth, I know, I was and with zero financial awareness but once you start are making some money then it changes automatically.

[Mando100]

In our country, it is a very common practice among friends, family members and relatives to lend our bank account to receive their money in our accounts and let them withdraw with ATM cards. Which is the issue I wanna address today after reading a bank freeze story on other platform.

People involved in p2p trading know the risks of bank freezes which often happens due to receiving funds linked with an illegal/unauthorized transfer from someone's bank account so months after we done trades just on a random day our bank accounts, credit/debit cards, internet banking will be inaccessible and when we contact the branch their response will be cyber crime ordered them to. Once we are at this stage it almost 99% that there's no going back and since we can't identify who send the funds so the primary suspect will be us to avoid being in the situation we should avoid trading p2p especially when they offer 12% or 20% over the market rate.

Now coming back to the topic, there are chances that someone can take advantage of their ignorance and trade couple of times and withdraw their money immediately but after months they will receive bank freeze and all their money will be under hold indefinitely so we should create awareness about this among our friends and family circle about not lending our bank accounts to anyone and even by the bank terms it's solely for personal usage and all the legal liability comes under the responsibility of the account owner alone.

This behaviour of lending or sharing our account with friends or family members  or relatives, should be totally be unacceptable, no matter how close they are to us. not just the acceptance of someone trading P2P with our accounts. But even in other terms of transactions we should avoid lending our accounts to them for transactions. Bank account should be for a single entity and should be personal to us, because whenever good or criminal transactions are made with our accounts we will be the one to be hold responsible even though the criminal actions were not committed by us. Because they are so many risk been attached to it, so we should be careful and mindful on how we handled our personal accounts for some transactions.