We report the oxidation of a wide range of alcohols using an environmentally benign and economical process. The use of Pd/C heterogeneous catalysts along with NaBH4 in aqueous ethanol or methanol and either K2CO3 or KOH as base at room temperature under molecular oxygen or air give the corresponding oxidation products. This protocol is versatile since it is capable of oxidizing alcohols to its desired carbonyl or carboxyl counterpart. Room temperature reaction in aqueous system and recyclability of the catalyst are among the advantages of this manipulation. These advantages make the process safe and cheaper rendering it favorable from both economic and environmental viewpoints.