REGULATORY · COMPETITIVE · INDIA
NCDRC orders Axis Bank to pay Rs 3.19 crore
Change
The National Consumer Disputes Redressal Commission on March 10 ordered Axis Bank to pay Rs 3.19 crore to Procure Logistics Services Pvt Ltd for refusing to accept demonetised currency deposits during the 2016 deposit window.
Why it matters
The NCDRC found a deficiency in service arising from repeated refusals to accept demonetised notes for deposit into the complainant's KYC-compliant account during the limited post-demonetisation window. The commission ordered payment of Rs 3.19 crore to Procure Logistics Services Pvt Ltd. The award carries simple interest at 6% per annum from December 30, 2016 until the date of payment. The finding noted that nothing prevented the bank from accepting the cash and reporting any suspicious transaction to authorities.
Implications
- • Axis Bank must record and pay Rs 3.19 crore plus accrued simple interest from December 30, 2016 until settlement.
- • Accrued interest at 6% per annum will increase the total payable amount until the payment is completed.
Who is affected
- • Axis Bank (respondent bank)
- • Corporate account holders seeking to deposit cash into KYC-compliant accounts
- • Bank operations and compliance teams
What to watch
- • Order date: March 10
- • Interest accrual start date: December 30, 2016 (interest runs until payment)
Source
Topics
Law & Public Safety Compliance Finance & Banking Banking Regulation Financial Services