5 Questions
Which one of the following is considered as limited legal tender according to the Coinage Act 2011?
Below 50 paisa
Which Act states that every bank note is legal tender in India?
RBI Act 1934
What is the penalty for cash transactions beyond Rs.2 lakh according to the Finance Act 2017?
Entire amount
Which one of the following correctly describes the meaning of legal tender money?
The money which a creditor is under compulsion to accept in settlement of his claims
According to the Coinage Act 2011, which denomination of coins are withdrawn?
Below 50 paisa
Study Notes
Legal Tender in India
- One rupee notes and fifty paise coins are considered as limited legal tender according to the Coinage Act 2011.
- The Reserve Bank of India Act 1934 states that every bank note is legal tender in India.
- The penalty for cash transactions beyond Rs.2 lakh is a fine of equal amount, according to the Finance Act 2017.
- Legal tender money is a medium of exchange that must be accepted in payment of debts, correctly describing the meaning of legal tender money.
- The Coinage Act 2011 has withdrawn fifty paise coins and other coins below fifty paise.
Test your knowledge of economics with this quiz based on Mrunal's Economy Handout Lecture 1-2
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