Axis Bank ordered to pay ₹3.19 crore
Analysis based on 7 articles · First reported Mar 14, 2026 · Last updated Mar 16, 2026
The ruling against Axis Bank could set a precedent for similar cases, potentially impacting other banks that may have refused demonetised currency deposits during the 2016 demonetisation. For Axis Bank, this results in a direct financial penalty and a negative impact on its reputation regarding customer service and compliance.
The India — National Medical Commission (NCDRC) has ordered Axis Bank to pay ₹3.19 crore plus interest to Procure Logistics Services Private Limited. This ruling stems from Axis Bank's refusal to accept demonetised currency notes from Procure Logistics Services Private Limited during the 2016 demonetisation period in India. The NCDRC found Axis Bank guilty of 'deficiency in service', stating that the bank failed to adhere to the State Bank of India's notifications which permitted deposits in KYC-compliant accounts. The bank's argument that the account was 'high-risk' and that Procure Logistics Services Private Limited was not a 'consumer' under the Consumer Protection Act was rejected. The refusal led to an irreversible loss for Procure Logistics Services Private Limited as the notes became worthless after the deadline. The payment, including 6% simple interest from December 30, 2016, must be made within two months, with a 9% interest rate applicable for any delay.
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