The registrar informs banks once allotment is complete. Banks then release the blocked amount for unsuccessful applicants.
If the final issue price is lower than the upper band, the excess blocked amount is released in the same way.
An easy example
You blocked Rs 14,946 for one lot. You are not allotted shares, so the block is lifted and the money becomes usable again.
Important note
Since funds are blocked rather than debited, most investors see the amount unblocked rather than a fresh credit.
Common mistake
Panicking on allotment day. Unblocking usually completes within one to two working days after allotment is finalised.