39. Obligation to
supply different forms of currency.- (1) The Bank
shall issue rupee coin on demand in exchange for bank notes
and currency notes of the Government of India, and shall issue
currency notes or bank notes on demand in exchange for coin
which is legal tender under the Indian Coinage Act, 1906.
(2) The Bank shall, in exchange for currency notes or bank
notes of two rupees or upwards, supply currency notes or bank
notes of lower value or other coins which are legal tender
under the Indian Coinage Act, 1906, in such quantities as
may, in the opinion of the Bank, be required for circulation;
and the Central Government shall supply such coins to the
Bank on demand. If the Central Government at any time fails
to supply such coins, the Bank shall be released from its
obligations to supply them to the public.
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