Question

indian paper currency is incovertable . discuss​

Answer 1

Answer:

Thus, now-a-days paper money is of inconvertible type. Under the inconvertible paper money system, money is not convertible into gold or other precious metals. Thus, when paper money is inconvertible, the issuing authority is not responsible to convert the paper notes into gold or gold coins.

Answer 2

Inconvertible Money:

Thus, when paper money is inconvertible, the issuing authority is not responsible to convert the paper notes into gold or gold coins. The currency notes that are issued by Reserve Bank of India are 'fiat' paper money, that is, they are issued by the fiat i.e. order) of the Government.