‘The Rupee is widely accepted as a medium of exchange’. Explain.
In India, the rupee is widely accepted as a medium of exchange because of the authentication of the Reserve Bank of India (RBI). RBI plays an essential role in printing the currencies, there is no other authority other than RBI has the power to issue the currency and it has the sole authority. RBI is the central bank of India which on behalf of the central government in financial matters. It is the law that legalizes the use of rupee as a medium of exchange anywhere in India. No person can refuse the Rupee for the transaction; if he refuses, then he can be sued by law. Therefore it is the law that makes the rupee as a widely accepted as a medium of exchange in the country.