The Legal Tender (Inscribed Notes) Act, 1964

The Legal Tender (Inscribed Notes) Act, 1964 regulates the use of inscribed notes as legal tender in India. According to the act, any inscribed notes issued by the Reserve Bank of India (RBI) are deemed to be legal tender in India. However, the act also empowers the RBI to withdraw any inscribed notes from circulation if they are found to be defective or not of standard design. The act also lays down the rules for the issue and exchange of inscribed notes, as well as the penalties for counterfeiting or defacing them.