26. Legal tender character
of notes.- (1) Subject to the provisions of sub-section
(2), every bank note shall be legal tender at any place in
India in payment or on account for the amount expressed therein,
and shall be guaranteed by the Central Government.
(2) On recommendation of the Central Board the Central Government
may, by notification in the Gazette of India, declare that,
with effect from such date as may be specified in the notification,
any series of bank notes of any denomination shall cease to
be legal tender save at such office or agency of the Bank
and to such extent as may be specified in the notification.
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