Axis Bank Ordered to Compensate for Refusal to Accept Demonetised Notes

The NCDRC has ordered Axis Bank to pay Rs 3.19 crore to a logistics company for not accepting demonetised notes. The case highlights service deficiencies during the demonetisation period in 2016. The bank was found guilty of not allowing deposits into a KYC-compliant account, causing financial loss.

The National Consumer Disputes Redressal Commission (NCDRC) has ruled against Axis Bank, ordering the bank to compensate Rs 3.19 crore to Procure Logistics Services Pvt Ltd. The directive followed the bank's refusal to accept demonetised currency notes during the 2016 demonetisation period, constituting a deficiency in service.

The commission found that Axis Bank repeatedly disallowed the complainant to deposit money into its KYC-compliant account within the government-specified timeframe. Despite the limited window for such deposits post-demonetisation, Axis Bank failed to act, leading to the complainant's financial loss.

The commission emphasized on the bank's obligation to accept deposits in maintained accounts, suggesting that any refusal should be based on valid regulatory reasons. Axis Bank has been instructed to settle the amount with interest by a specific deadline, failing which higher interest penalties will be applied.