Question

Two statements are given below. They are Assertion (A) and Reason (R). Read both the statements and choose the correct option.
Assertion (A): No individual in India can legally refuse a payment made in rupees.
Reason (R): In India, the rupee is authorized by the State Governments.

• A. Both (A) and (R) are true and (R) is the correct explanation of (A).
• B. Both (A) and (R) are true, but (R) is not the correct explanation of (A).
• C. (A) is true, but (R) is false.
• D. (A) is false, but (R) is true.

Answer 1

The Correct Option is C

The Reserve Bank of India (RBI), under the central government, designates the Indian rupee as legal tender. State governments do not hold this authority. Consequently, no person in India is permitted to reject payment in rupees, as it is the country's official currency.