ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -In India, one cannot refuse a payment made in rupees because, by law, the Reserve Bank of India (RBI) issues currency notes on behalf of the central government.

Detailed explanation-2: -2. In India, the Reserve bank of India issues currency notes on behalf of the Central Government of India. 3. The law legalizes the use of rupee as a medium of payment that cannot be refused in settling transaction in India.

Detailed explanation-3: -No individual in India can legally refuse a payment made in rupees. Hence, the rupee is widely accepted as a medium of exchange.

Detailed explanation-4: -It is accepted as a medium of exchange because the currency is authorised by the government of the country. In India, the Reserve Bank of India issues currency notes on behalf of the central government. As per Indian law, no other individual or organisation is allowed to issue currency.

Detailed explanation-5: -Modern forms of money include paper notes and coins. Rupee is widely accepted as a medium of exchange because: It is authorised by the government of India. The law legalises the use of rupee as a medium of payment and settling the transactions. Thus no one can refuse a payment made in rupees.