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Q.

" I promise to pay the bearer the sum of one Hundred rupees" a promise made by Governor of Reserve Bank. What is the significance of that statement ?

Tags: money, relationships, education
Asked by sitapati rao, 12 Nov '09 07:05 am
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Answers (8)

 
1.

The value Rupees 10/-, Rupees 20/- etc. printed on RBI's Banknotes shows the face value of those printed papers and this face value of the Banknotes has no meaning to the bearer of those printed papers i.e. the Banknotes. The meaning of Banknotes to the bearer of those printed papers is the real value of the Banknotes only. RBI is promising to pay the real value of Banknotes by printing promise clause on the Banknotes. Thus the meaning of RBI's promise printed on Banknotes is the meaning of Banknotes to the bearer.


Say, Rupees 10/- note, Rupees 50/- note etc. are itself the 'Rupees', which RBI is promising to pay to the bearer of Banknotes. Then it is meaningless to say that the meaning of RBI's promise is that the bearers of Banknotes can ask RBI for the Banknotes itself as 'Rupees' in exchange of the Banknotes. It is also meaningless to say that the bearers of Banknotes are getting valueless current FSS 'Rupee coins' from RBI in exchange of the Banknotes. Meaning of Bankn ...more
Answered by Jack Johnson, 12 Nov '09 08:14 am

 
  
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2.

If everybody in the territory of India refuses to honour that currency note to pay the value of the denominated value, the Governor of RBI will pay the promised amount to the bearer of that instrument.
Answered by subhash tiwari, 12 Nov '09 07:30 am

 
  
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3.

That it is not the promise made by the government of India, it is the governor of the Reserve bank of India who is promising to pay the money to the bearer of the note
Answered by rajnikant raiyarela, 12 Nov '09 07:49 pm

 
  
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4.

To make the currency a legal tender , and the promise to accept it for liquidation and for circulation based on trust of of money management, by Reserve Bank Of India ,by it Governor.
Answered by venkatesaldevarajan, 12 Nov '09 09:00 am

 
  
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5.

It is universally accepted
Answered by pramod rajapurkar, 12 Nov '09 07:51 am

 
  
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6.

This is signed by Governor to authenticate it as a Currency. The term "I promise to pay the bearer the sum of one Hundred rupees", is a promise made by the owner of that currency to the person to whom he is paying it. In other words, Currency is nothing but a Promissory Note.
Answered by poonam duggal, 12 Nov '09 07:50 am

 
  
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7.

It is like a promissory note with the only difference that a pronote is to a specific individual. The currency note is to whosoever hold the note and government promises to redeem it should be bearer insist on it. It is on the strengfthof this promise that people accept it in the fullbelief that the pronote will never be dishonoured.This undertaking is not there on notes of lower denominations. However, a remark that the note is guaranteed by the government is on them which practically have the same guarantee.
Answered by radhikamruta, 12 Nov '09 07:48 am

 
  
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8.

It carries literary value for the words mentioned therein as long as a creditworthy government is ruling the country. If anarchial government is ruling the country, such promises may not carry any value!
Answered by dinkar shetty, 12 Nov '09 07:45 am

 
  
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