What does it mean I promise to pay the bearer?
Table of Contents
- 1 What does it mean I promise to pay the bearer?
- 2 Why bank note is not a promissory note?
- 3 Why I promise to pay the bearer sum of 100 rupees is written on the Indian currency?
- 4 What happens if a promissory note is not paid?
- 5 Is the year mentioned on all the coins?
- 6 What is written on the bottom of a 100 rupee note and how can you explain it?
- 7 What is the promissory clause in a rupee note?
- 8 Why does RBI print all the notes of all denominations?
What does it mean I promise to pay the bearer?
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.
Is RBI is responsible for giving the bearer of the currency equal purchasing power?
Every currency note bears on its face a promise from the Governor of RBI that if someone produces the note to RBI, or any other commercial bank, RBI will be responsible for giving the person purchasing power equal to the value printed on the note.
Why bank note is not a promissory note?
However , Currency notes are money and they don’t fulfill the conditions of the PN. The currency is excluded from NI act and governed by Indian Currency Act. So Currency notes are Not promissory Notes.
What is written on Indian note?
All notes have a silver security thread, with inscriptions ‘RBI’ in English and ‘Bharat’ in Hindi. These inscriptions are visible when held against the light.
Why I promise to pay the bearer sum of 100 rupees is written on the Indian currency?
The promissory note written on the currency note ensures to the currency holder that the note is the legal tender in the country and the recipient of the currency note does not carry any risk in holding the currency.
What is the highest currency note in India?
A newly redesigned series of ₹500 banknote, in addition to a new denomination of ₹2,000 banknote is in circulation since 10 November 2016. The ₹1,000 note has been suspended….
| Indian rupee | |
|---|---|
| Indian rupee banknotes Coins of the Indian rupee | |
| ISO 4217 | |
| Code | INR |
| Denominations |
What happens if a promissory note is not paid?
What Happens When a Promissory Note Is Not Paid? Promissory notes are legally binding documents. Someone who fails to repay a loan detailed in a promissory note can lose an asset that secures the loan, such as a home, or face other actions.
WHO issues promissory note?
Promissory notes are debt instruments. They can be issued by financial institutions. The capital markets consist of two types of markets: primary and secondary.. However, they can also be issued by small companies or individuals.
Is the year mentioned on all the coins?
The year of minting in international numerals shall be shown on centre of left periphery of the coin. Apart from the Rs 20 coin, rest of the new coins will be introduced in open markets along with the existing coins of the same denomination.
Why are there only 17 languages on Indian currency notes?
There are more than 150 languages spoken in India. We cant practically put each and ever language on the note. That is the reason only 17, most widely spoken languages are taken into consideration. If you have noticed that the languages on the notes are the officially chosen language of each state.
What is written on the bottom of a 100 rupee note and how can you explain it?
The security features of the ₹100 banknote includes: A windowed security thread that reads ‘भारत’ (Bharat in the Devanagari script) and ‘RBI’ alternately.
What is the meaning of “I promise to pay the bearer sum of 100 rupees”?
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 the promissory clause in a rupee note?
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.
What is the meaning of “I promise to pay the bearer”?
It means that the RBI (Reserve Bank of India) of the country (in other words the Government) promises that the person who possesses the currency note (i.e. the bearer) will be eligible to be paid goods worth the amount mentioned on that currency note. You observe Indian Rupee, ” I promise to pay the bearer…”
Why does RBI print all the notes of all denominations?
RBI prints the notes of all denomination except 1 rupee note because it is printed by the Ministry of Finance. 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”.