Once you maintain 100 rupee word in your hand, you will note a pledge by the RBI Governor: “
I promise to pay the bearer the sum of 100 rupees.” What does this pledge imply when you’re truly in bodily possession of the forex word?
I promise to pay the bearer the sum of 100 rupees.” What does this pledge imply when you’re truly in bodily possession of the forex word?
Like most individuals, I too by no means bothered to probe this till I turned governor and it turned a part of my job to know the import of a promise I used to be making. I used to be informed that this meant the governor is guaranteeing that the word is authorized tender, and can’t be refused as a method of fee. A conscientious governor will even see this as a reminder of his responsibility to protect the buying energy of the rupee by maintaining inflation low and regular.
How will the governor make this promise with the digital e-Rupee that RBI is reportedly planning to subject?
Supply: Times of India