Is the barter system legal?

On December 1, 2015, Reserve Bank of India (RBI) officially put an end to the barter system of trading along the Indo-Myanmar border. However, India and Myanmar allowed Barter trade of 22 items. You can read about the Monetary System – Types of Monetary System (Commodity, Commodity-Based, Fiat Money) in the given link.

Centuries old annual barter trade takes place in Assam. This mela is known as Joon Beel Mela. People from Assam, Arunachal Pradesh and Meghalaya take part in this 3 day annual fair, where commodities are exchanged through the barter system

Further readings:

  1. Indian Economy Notes for UPSC Civil Service Exam
  2. Monetary Policy – Objectives, Role, Instruments 

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