In the 19th century, gold coins were legal tender of any amount, but silver coins were not legal tender for sums greater than 2 pounds or bronze for sums greater than 1 shilling. This provision was retained in a revised form with the introduction of decimal money, and the Currency Act 1971 stipulated that coins over 10 pence became legal tender for the payment of up to £10, non-bronze coins with not more than 10 pence legal tender for the payment of no more than £5. and bronze coins having legal tender for the payment of not more than 20 pence. Finally, for banknotes and coins withdrawn from circulation, the banknotes and coins to be replaced are legal tender for a period of one year from the date of the order. At the end of this period, they cease to be legal tender, but in the following year or a longer period determined by the Monetary Board of Bangko Sentral ng Pilipinas (GNP), they can be exchanged at face value. At the end of this period, notes and coins that have not been exchanged cease to be submitted to BSP and are cancelled. (Section 57 of Republic Act No. 7653) The Swiss franc is the only legal tender in Switzerland. Any payment of up to 100 Swiss coins is legal tender; Banknotes are legal tender for any amount. [32] The GNP prior approval requirement applies to the import and export of a natural or legal person who is legal tender in Philippine domestic currency greater than PHP 50,000.00. As of 2005, banknotes were legal tender for all payments, and $1 and $2 coins were legal tender for payments up to $100, and 10c, 20c and 50c silver coins were legal tender for payments up to $5. These old silver coins were legal tender until October 2006, after which only the new 10c, 20c and 50c coins introduced in August 2006 remained legal. [29] Banknotes are not legal tender in Scotland.
[42] Scottish banknotes are legal tender but are not legal tender anywhere in the United Kingdom. [43] What about notes? Is there a limit to their legal tender? Nothing. Debentures, whatever they may be called, are legal tender for any amount of bonds. So you want to catch up with your creditor? Well, consider depositing coins and notes of different denominations and let your debtor count in your presence. On 8 November 2016, Prime Minister Narendra Modi announced that the existing INR 500 and INR 1000 notes would no longer be accepted as legal tender in order to combat counterfeiting, tax evasion and the shadow economy. [27] The Reserve Bank of India has described a system whereby holders of such notes can either deposit them into their bank accounts for the full and unlimited value or exchange the notes for new ones, subject to a cap. [28] The 1¢ and 2¢ coins were withdrawn from circulation as of February 1992, but they are still legal tender. [15] In 1933, the Coinage Act authorized certain New Zealand coins and stripped British coins of their legal tender. In the same year, the Reserve Bank of New Zealand was established. The bank has been given a monopoly on the issuance of legal tender. The Reserve Bank has also provided a mechanism for other legal tender issuers to phase out their banknotes. These notes were to be converted into British legal tender upon application to the Reserve Bank and remained so until the notice of suspension of the Sterling Exchange of 1938, which repealed the provisions of an amendment to the Reserve Bank of New Zealand Act 1936.
The Bank Note Issue Act of 1893 allowed the government to declare a bank`s right to issue legal tender. This allowed the government to make such a statement in support of the Bank of New Zealand when the bank ran into financial difficulties in 1895 that could have led to its collapse. The Australian dollar, consisting of banknotes and coins, is legal tender in Australia. Australian banknotes are legal tender under the Reserve Bank Act 1959, p.36(1),[12] with no limit on the amount. The Currency Act 1965[13] also provides that Australian coins intended for general circulation are also legal tender, but only for the following amounts: Under U.S. federal law, U.S. dollar money is a valid and legal offer to pay past debts when offered to a creditor. In contrast, federal law does not require a vendor to accept federal currency or coins as payment for goods or services exchanged at the same time.
Therefore, private companies can formulate their own policies on whether or not to accept cash, unless state law provides otherwise. [3] [4] In many countries, a merchant`s right to refuse to do business with a person means that a potential buyer cannot force a purchase solely by presenting legal tender, as legal tender must only be accepted for debts already incurred.