It is quite common in my parish.
Our parish has a novena to St. Jude every Thursday evening. St. Jude was Jesus’ cousin, an Apostle, and the patron of lost causes and hopeless situations. During the novena, the deacon will raise the relic encased in a small cross, and making the sign of the cross with it, will bless those present. We will then be invited to come forward to pray over the relic, asking God to answer our prayers and asking St. Jude to unite our prayers with his on our behalf. Many, including myself, will venerate the relic with a kiss and we usually have between 20 and 30 people present.
One a side note, the novena has a bennediction of the Blessed Sacrament so the evening is almost like a family reunion - St. Jude and his cousin Jesus - but only Jesus is really present of course.

To me this is one of the holiest things I have ever done, not so much because of the rituals but because so many people come to pray fervently out of a deep faith for God’s help in their worst times.
If you are interested, the text of the prayers from our novena can be downloaded from
timhollingworth.webs.com/docs/catholic/novena.to.st.jude.doc
Veneration of relics is a contentious subject for many non-Catholics and can be a little unsettling for Catholics who are not familiar with the difference between Latria (adoration and worship) and Dulia (veneration and honor). The intercessoin of the saints is a poweful weapon however and I think Catholicism has gotten away from it a little.
-Tim-