CA Discussion ForumCategory: CA FoundationAre currency notes Pnotes? Or excluded only for Negotiable instruments Act?
Neha P. asked 3 years ago
1 Answers
CA Preeti Aggarwal Staff answered 3 years ago

Yes, currency note is a bearer promissory note issue by RBI. It is also written on the note “I Promise to pay the bearer sum of Rupees…”. But these currency notes are not covered in promissory notes under the Negotiable Instruments Act, 1881. Under this Act it is forbidden by RBI ACT, 1934 to issue bearer promissory note.