In this article, we will write ‘I promise to pay’ on the rupee, what does it mean. Will learn about it.
What is the meaning of ‘I undertake to pay to the holder’ on Rs.
Often our attention goes to this sentence written on the rupee but we do not think much about it but it is a very important thing. Let’s understand.
See, we all know that the value of any bank note is manifold of the value involved in its production.
If there is a note of 2000 rupees, then the cost of making it is hardly 5 rupees. But its value is equal to 2000 rupees.
People consider it as the value of 2000 rupees, that’s why the Reserve Bank gives a promise to the people that ‘I to the holder’ i.e. whoever has this note now. I promise to pay Rs 2000.
In other words, according to Section 26 of the Reserve Bank of India Act, 1934, the Reserve Bank is responsible for paying the face value on that bank note.
It is the constitutional obligation of the Reserve Bank to give in exchange for that bank note an amount equal to its value, either small denomination banknotes or coins of equal denomination under the ‘Indian Coinage Act 2011’.
So overall this is a promise that RBI makes to those who will use it. So that the value marked on that note should be considered the same.
hope you understand the meaning