Home / Business and Economy / Axis Bank Fined Rs 3.19 Cr for Demonetisation Deposit Refusal
Axis Bank Fined Rs 3.19 Cr for Demonetisation Deposit Refusal
14 Mar
Summary
- Axis Bank ordered to pay over Rs 3.19 crore to a logistics company.
- The bank was found deficient in service for refusing demonetised notes.
- The NCDRC ruled the bank's refusal constituted a deficiency in service.
The National Consumer Disputes Redressal Commission (NCDRC) has mandated Axis Bank to compensate Procure Logistics Services Pvt Ltd with Rs 3.19 crore. This ruling follows the bank's refusal to accept demonetised currency notes during the 2016 demonetisation window, which the commission deemed a 'deficiency in service'.
Presiding over the appeal, the commission noted that the bank repeatedly disallowed the deposit into the complainant's KYC-compliant account until the deadline passed. The NCDRC emphasized that banks have a duty to monitor and report suspicious transactions, rather than unilaterally refusing deposits within permitted timelines.
The commission concluded that the bank's actions directly resulted in an irreversible loss for the logistics company, as the notes became worthless. This constitutes a clear deficiency in service, irrespective of the demonetisation framework's legality. The bank must pay the amount with 6% simple interest within two months.
