- The (demonetized:

currency note issued by RBI), but no longer a legal tender (because legally it is banned
for transactions).
- G-Sec, T-Bill, Shares, Bonds, DD, Cheque, ATM, Cards, Kirana coin, Casino coin,
Bitcoins are NOT Fiat Money, and Not legal tenders. Commemorative Coins = Fiat yes
but not legal tender unless notified to be used as legal tenders.

Table 1: Fiat Money: Two types of legal tenders

A) Limited legal tenders B) Unlimited legal tenders:
( ) (

Payment beyond a limit _ _ _ _ _ refused. No such restriction.

- Coinage Act 2011 - _ _ _ _ _ _ _ _ _ _ _ - Section 26:
- Rs. 1 / above upto Rs.1000 Every bank note is legal tender in
- 50 paisa x 20 coins upto Rs.10 India. They can be used for settling
- Below 50 paisa withdrawn (2011) any amount of debt in India**.

penalty= entire amount. But for MCQs: bank notes = unlimited legal
tenders.

MCQ: Which one of the following correctly describes the meaning of legal tender
money? (Asked in UPSC-Pre-2018)
(a) The money which is tendered in courts of law to defray the fee of legal cases
(b) The money which a creditor is under compulsion to accept in settlement of his claims
(c) The bank money in the form of cheques, drafts, bills of exchange, etc.
(d) The metallic money in circulation in a country

MCQ: Consider the following statements (Asked in UPSC-CDS-2011-II)

1. In India the minimum denomination coin acceptable for transaction is 50 paise.
2. Coins below 50 praise is not a legal tender for payment.
Which of the statements given above is/are correct?
(a) Only 1 (b) Only 2 (c) Both 1 and 2 (d) Neither 1 nor 2

10.3.4 (New) Visually Handicapped (VH) friendly Coins, 2019-March

Govt launched new series of VH-
size & weight.
20 coin: 12 sided Polygon (_ _ _ _ _ _ _ _ _), grains/agro motifs, no serration on
edges.
Remaining coins are round shaped. National Institute of Design (NID) helped in design.

10.3.5 (NEW) Mahatma Series Currency Notes in India

10 Sun Temple, Konark, Odisha. 13th Century Narsimhadev-I
20 Greenish Yellow, Ellora Caves in reverse.
50 Humpi Chariot from Vittala Temple, Karnataka

1A Money: Barter to Bitcoins Page 4