Jarir ad-Dabbi reported: I saw Ali (Allah be pleased with him) catching hold of his left hand) by his right hand on the wrist above the navel. Abu Dawud said: Sa'id b. Jubair narrated the words: "above the navel". Abu Mijlaz reported the words: "below the navel". This has also been narrated by Abu Hurairah. But that is not strong.
This hadith teaches us that we should always strive to restrain ourselves from any kind of sin or bad deed by controlling our actions through qabd al-yad in order to show humility before Allah SWT and gain His pleasure in return for our good deeds.