Home › CS Executive › ebcl › Reserve Bank of India Act, 1934 › Section 26(1) of the RBI Act, 1934 establishes t…
Section 26(1) of the RBI Act, 1934 establishes the legal-tender character of banknotes. Which combination correctly captures the rule under Section 26(1)?
Answer & Solution
Correct answer: A.
1. Section 26(1) defines the legal-tender character of a banknote.
2. Every banknote shall be legal tender at any place in India.
3. It is legal tender for the amount expressed on the note.
4. The note is guaranteed by the Central Government.
5. The Maharashtra-only, certificate-based and SAT-guarantee variants are not the Section 26(1) rule.
_Source: ICSI CS Executive Paper 7 (Economic, Business and Commercial Laws) — Lesson 1: Reserve Bank of India Act, 1934, pp. 8-21._
Related questions
Section 56 of the Banking Regulation Act, 1949 plays a specific bridging role with respectAmong the instruments of monetary policy listed in the lesson, the Market Stabilisation ScSection 22 of the BR Act, 1949 confers a specific licensing power on the RBI in relation tThe lesson notes that the BR Act, 1949 contains no specific provision for forming a formalSection 45U(a) of the RBI Act, 1934 defines "derivative" for the purposes of RBI regulatioSection 35-A of the Banking Regulation Act, 1949, cited in the lesson, gives the RBI a widSection 29 of the RBI Act, 1934 confers a specific tax exemption on the Reserve Bank in reThe lesson cites the Paper Currency Act, 1861 as a key historical milestone in note-issue.