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

Question

What is limited and unlimited legal tender ??

with reference to Indian money system..

Answer 1

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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.

Source(s): http://en.wikipedia.org/wiki/Legal_tender http://www.blurtit.com/q306660.html