The National Consumer Disputes Redressal Commission (NCDRC) has ordered Axis Bank to pay ₹3.19 crore to a Delhi-based logistics company called Procure Logistics Services Pvt Ltd. During the 2016 Indian demonetisation, the government stopped old ₹500 and ₹1000 notes on 8 November 2016. People and companies were given a limited time to deposit these old notes in banks.
Procure Logistics had a large amount (₹3.19 crore) of these old notes. The company tried many times to deposit the money in its Axis Bank account, which was already KYC-verified. But Axis Bank refused to accept the deposit, even though the account was KYC-compliant (properly verified). Because of this refusal, the deadline to deposit the notes passed, and the old currency became worthless, causing a big financial loss to the company.
What did the commission say?
The commission said the bank should have accepted the money because depositing cash in a valid account is a basic banking service. If the bank suspected something unusual, it could have accepted the money and reported the transaction to authorities. Simply refusing to take the money was not allowed.
Because the bank kept refusing the deposit until the deadline ended, the company lost the chance to deposit the old notes, and the money became worthless.
The commission said that the bank did not provide proper service to the company, which is called “deficiency in service.” Because of this mistake, the bank has been ordered to pay the company ₹3.19 crore. In addition to this amount, the bank must also pay 6% interest every year on the money, starting from 30 December 2016 until the full payment is made. This means the longer the bank takes to pay, the more interest it will have to add
The bank must pay the amount within two months. If it fails to do so, the interest will increase to 9% per year for the delayed period.
.
