"Shadow balance (or lien) refers to an amount that a bank internally marks as unavailable in an account, without physically debiting or transferring it out — the money legally remains in the account, but the customer cannot withdraw or use that portion. This commonly happens when: a cheque is deposited but not yet cleared; an investigating agency (police, ED, cyber cell) directs a partial hold pending investigation instead of freezing the whole account; a loan/credit facility has security held against the account; or in cyber fraud cases, where RBI/banking ombudsman guidelines allow a 'lien marking' on suspected fraud proceeds pending investigation. Unlike a full account freeze, a shadow balance lets the customer continue using the account for other transactions, while the marked amount stays locked until the agency or bank lifts the hold, or a court/Magistrate order directs release." Adv Neha
