Reserve Bank of India Act, 1934 · Chapter III: Central Banking Functions
Section 26: Legal tender character of notes
(1) Subject to the provisions of subsection (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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Source: India Code (indiacode.gov.in), the consolidated text published by the Legislative Department, Government of India. Text as updated on India Code on 15 October 2026. Words in square brackets [ ] were inserted or substituted by later amending Acts, and *** marks words omitted by an amendment. The amendment footnotes are not reproduced here. Official text on India Code.
Supreme Court judgments citing the section 26
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Karam Chand Thapar case [Chief Inspector of Mines v. Lala
State Commission held that the tariffs offered by the L-4 and L-5 bidders were not aligned to the prevailing market prices. In appeal by L-5, APTEL held that the State Commission had to necessarily adopt the tariff and…
- National Highway Authority of India (Nhai) v. Gvk Jaipur Expressway Pvt. Ltd
- Vivek Narayan Sharma v. Union of India
- Jyantilal Ratanchand Shah v. Reserve Bank of India and Ors