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Definition: Bank Note
A banknote is a negotiable instrument called promissory note, by the bank payable to the bearer on demand. Thus these banknotes are legal tenders of a transaction and hence form the modern time money along with coins. Value of banknote is mentioned on the face of the note. Notes are also known as ‘Bill’
Originally, banknotes were issued as a promise to pay the bearer in coins in future, but later became a substitute for coin and finally got acceptance as modern money. Previously co-operatives were also allowed to print banknotes, however now only reserve bank of India has the authority to issue bank notes in India. They do make changes in the design of notes from time to time.
Banknotes in denomination of 5000 of different currencies