NEW DELHI — The National Consumer Disputes Redressal Commission (NCDRC) has directed Axis Bank to pay ₹3.19 crore plus interest to Procure Logistics Services Pvt Ltd. The ruling finds the bank guilty of "deficiency in service" for refusing to accept demonetized currency deposits during the 2016 window.

Key Findings of the Ruling:

• Unlawful Refusal: The commission, led by presiding member AVM J Rajendra and judicial member Anoop Kumar Mendiratta, stated that the bank repeatedly blocked the company from depositing notified cash into its KYC-compliant account without a valid regulatory basis.
• Bank’s Obligations: The NCDRC noted that if a bank finds a transaction suspicious, it is mandated to report it to authorities, not unilaterally refuse the deposit during a government-notified window.
• Direct Financial Loss: The refusal caused the company's cash holdings to become "worthless" once the deadline expired, leading to what the commission called a "direct and irreversible loss."

The Penalty:

• Principal Amount: ₹3.19 crore.
• Interest: 6% per annum (simple interest) calculated from December 30, 2016, until the payment date.
• Deadline: Payment must be made within two months. If delayed, the interest rate will escalate to 9% per annum.

The order emphasizes that accepting deposits in maintained accounts is a "core banking service" and that any refusal must be supported by cogent, legally backed reasons.