Anonymous
Anonymous asked in Social ScienceEconomics · 1 decade ago

Legal tender.....help needed....?

What is limited and unlimited legal tender ??

with reference to Indian money system..

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  • Anonymous
    1 decade ago
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    Legal tender or forced tender is an offered payment that, by law, cannot be refused in settlement of a debt, and have the debt remain in force.

    Unlimited legal tender:Unlimited tender money is one in terms of which debt can be legally paid up to any amount. Like you cannot force your creditor to accept full debt(say of 1 million Rupees) in 10 Paise coinage as it(10 Paise) holds limited limited legal tender status. Here I don't know at what level they have made(RBI) currency acceptable as unlimited legal tender value.

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