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Bank: Legal Tender Money, cheques, credit cards and similar noncash methods

 

 

Bank: Legal Tender Money, cheques, credit cards, and similar noncash methods and Demonetization, Remonetization

MONEY which is acceptable in the working market as a money is said to be Legal Tender money. paper currency and coins are one of the common in all over the world which is said to be Legal Tender Money, therefore cheques, credit cards and similar noncash methods of payment are not usually legal tender.

Generally when money is selected in particular form as legal tender when it is selected for the payment of debts. In some authority legal tender can be refused as payment if no debt is there at the time of payment.F or example, any small merchant does not accept large bank notes, etc.

Replacement of legal tender money

Demonetization when the old currency is not accepted in the market and if it is done it becomes crime usually this process is done to stop black marketing or black money so all legal tender money is not accepted as money and new currency are treated as legal tender money.

Remonetization is the way by which old legal tender is treated again as legal tender money.

So it is an official payment which is issued by law to be accepted as a source of payment. for example, currency issued by RBI and coins too are accepted as legal tender money of India.

Widely accepted currencies such as U.S. dollar and euro are accepted as legal tender in many nations, especially in those where foreign currency is in short supply.


 

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