Because demand deposits can be rejected by anyone as a mode of payment. Hence, it is a non-legal tender. Banknotes cannot be rejected by anyone, hence it is known as legal tender. You can read about the RBI – Know More About Reserve Bank of India in the given link.
Further readings:
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Related Links |
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Black Money: Definition, Sources & Measures to Curb Black Money |
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Money Supply in Economy – Types of Money, Monetary Aggregates, Money Supply Control |
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