What is legal tender?
The coins issued under the authority of Section 6 of The Coinage
Act, 1906, shall be legal tender in payment or on account i.e. provided that a
coin has not been defaced and has not lost weight so as to be less than such
weight as may be prescribed in its
case: - (a) coin of any denomination not lower than one rupee shall be legal tender for any sum, (b) half rupee coin shall be legal tender for any sum not exceeding ten rupees, (c) any other coin shall be legal tender for any sum not exceeding one rupee [Section 13 of The Coinage Act, 1906].
case: - (a) coin of any denomination not lower than one rupee shall be legal tender for any sum, (b) half rupee coin shall be legal tender for any sum not exceeding ten rupees, (c) any other coin shall be legal tender for any sum not exceeding one rupee [Section 13 of The Coinage Act, 1906].
Similarly, the One Rupee notes issued under the Currency
Ordinance, 1940 are also legal tender and included in the expression Rupee coin
for all the purposes of the Reserve Bank of India Act, 1934.
Every banknote issued by Reserve Bank of India (Rs.2, Rs.5, Rs.10,
Rs.20, Rs.50, Rs.100, Rs.500 and Rs.1000) shall be legal tender at any place in
India in payment or on account for the amount expressed therein, and shall be
guaranteed by the Central Government, subject to provisions of sub-section (2)Section 26 of RBI Act, 1934.
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