Consumer panel directs Axis Bank to pay ₹3.19 cr over refusal to accept demonetised notes in 2016

In a significant ruling, a consumer panel has ordered Axis Bank to compensate ₹3.19 crore to a complainant after the bank refused to accept demonetised currency notes during the 2016 currency ban. The decision underscores the legal obligations of financial institutions to adhere to government directives regarding currency exchange, especially in the wake of the government's sudden demonetisation move aimed at curbing black money and counterfeit currency. The complainant had approached the consumer forum after facing difficulties in depositing the old notes, which were deemed invalid following the government's announcement in November 2016. The panel highlighted that Axis Bank's refusal to accept the notes was unjustified, as it had a responsibility to follow the regulations set forth by the Reserve Bank of India (RBI). This ruling not only emphasizes consumer rights but also serves as a reminder to banks about the importance of compliance with national financial policies. Following the demonetisation initiative, many citizens faced challenges in transitioning to the new currency, raising concerns about financial service providers' roles in ensuring a smooth process for their customers. The ruling is expected to encourage other consumers facing similar issues to seek redressal through legal channels.