One rupee indian coin is called "limited legal tender" because
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‘Legal tender’ is the money that is recognised by the law of the land, as valid for payment of debt. It must be accepted for discharge of debt. The RBI Act of 1934, which gives the central bank the sole right to issue bank notes, states that “Every bank note shall be legal tender at any place in India in payment for the amount expressed therein”.Legal tender can be limited or unlimited in character. In India, coins function as limited legal tender. Therefore, 1 Rs coins can be offered as legal tender for dues up to ₹10 and smaller coins for dues up to ₹5.
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One rupee Indian coin is called "limited legal tender" because it means that for payment, it can be done only to a certain limit by coins. On the other hand, the payment can be done without any limit by notes in India.
Explanation:
- In India, the coins are termed as a limited legal tender, and the notes are termed as unlimited legal tender.
- The coins in India are ‘limited legal tender’ since it is a form of ‘legal tender money’ that can be paid for clearing the ‘debt of any amount’.
- If a person refuses to accept this money then ‘legal action’ can be taken against the person.
Learn more about Indian coin
History of Indian coin usage in British rule
https://brainly.in/question/1747044
Autobiography of Indian coin and their picture in 120 words
https://brainly.in/question/9908947
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