Legal tender money and Non – legal tender money.




Legal Tender Money
Non Legal Tender Money
1. It refers to the money acceptance of which is compulsory as per law.
1. It is the money which is generally used by people in final payments but has no legal compulsion.
2. Currency notes and coins issued by the monetary authority of the country is legal tender money.
2. Cheques, bills of exchange, demand draft are example of non legal tender money.
3. It is of two types i.e. limited legal tender and unlimited legal tender.
3. It can be drawn as per requirement of amount of transactions.
4. Non acceptance result in punishment.
4.Non acceptance does not result in punishment.

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