Look at a 10 rupee note. What is written on top? Can you explain this statement?
On top of a 10 rupee note, the name Reserve Bank of India is written. The text explains that in India, the Reserve Bank of India issues currency notes on behalf of the central government.
This statement signifies that the currency is authorised by the government. As per Indian law, the rupee is legalised as a medium of payment that cannot be refused in settling transactions. No individual in India can legally refuse a payment made in rupees, which ensures it is widely accepted as a medium of exchange.
Explanation
The question asks the student to identify the issuing authority on the currency note and explain its significance. The provided context explicitly states that the 'Reserve Bank of India issues currency notes on behalf of the central government'. It further explains that modern currency is accepted as a medium of exchange because it is 'authorised by the government', making it legally valid for transactions that no one can refuse.