As per Section 26 of Reserve Bank of India Act, 1934, the Bank is liable to pay the value of banknote. … The promissory clause printed on the banknotes i.e., “I promise to pay the bearer the sum of Rupees …” is a statement which means that the banknote is a legal tender for the specified amount.
Why I promise to pay the bearer sum of 100 rupees is written on the Indian currency?
Except one rupee note every currency note of India has the declaration of the RBI governor; “I Promise to pay the bearer sum of 100 Rupees”. Its simple meaning is; if somebody held a note of 100 rupee then it is the liability of the RBI to pay the bearer goods/gold of 100 rupee at any cost.
What is written on the top of a 10 rupee note explain the statement?
On the top of a 10 Rupee note “Reserve Bank of India, Guaranteed by the Central Government is written.” … This means that the currency is authorised or guaranteed by the Central Government and no one can refuse payment made in it.
What is written on Indian note?
As like the other Indian rupee banknotes, the ₹100 banknote has its amount written in 17 languages. On the obverse, the denomination is written in English and Hindi. On the reverse is a language panel which displays the denomination of the note in 15 of the 22 official languages of India.
Is Indian currency a promissory note?
Yes Indian rupee is promissory note because it is negotiable instruments. ex: Cheques, bills of exchange, promissory note.
Why does it say I promise to pay the bearer?
“The words ‘I promise to pay the bearer on demand the sum of five [ten/twenty/fifty] pounds‘ appears on all of our banknotes. This phrase dates from long ago when our banknotes represented deposits of gold. At that time, a member of the public could exchange one of our banknotes for gold of the same value.
What is written on 10 rupees?
The denominational numeral 10 will be printed on the front of the note in the Devnagari script. 4. The front sides will bear a portrait of Mahatma Gandhi at the centre. Micro letters ‘RBI’, ‘Bharat’ (in Devnagari), ‘India’ and ‘10‘ will also be printed on the front side of ₹ 10 notes.
Who is RBI Governor of India?
In what ways does the Reserve Bank of India?
i The Reserve Bank of India supervises the functioning of formal sources of loans. ii The RBI monitors the banks in actually maintaining cash balance. iii The RBI sees that the banks give loans not just to profit making businesses and traders but also to small cultivators small-scale industries to small borrowers etc.
How much is $1 US in India?
US dollars to Indian rupees conversion table
|1 USD||USD||74.33 INR|
|2 USD||USD||148.67 INR|
|3 USD||USD||223.00 INR|
|4 USD||USD||297.33 INR|
How do I exchange old notes in 2020 RBI?
Exchanging old notes
You need not visit the branch of the bank where you have an account in. If you want to exchange up to Rs 4,000 in cash, you can simply go to any bank with a valid ID proof. This limit of Rs 4,000 for exchanging old notes will be reviewed after 15 days.