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Glossary of Terms
ANNEX I
A fund of assets (external and/or local) usually required by law to be maintained at a value equivalent to the total of notes and coins issued and in circulation, and usually bearing interest. Brilliant Uncirculated or Specimen Coins
Coins that have been set aside immediately after minting and thus have a bright, untarnished surface without marks etc.; but they have a quality of finish lower than that of proof coins.
De-legal Tender
Subject to the granting of a minimum statutory period of notice, the issuing authority may call in any currency notes or coins for exchange for a new series of notes and coins of equivalent nominal face value. On the expiry of the period of notice, the notes or coins concerned cease to be legal tender. The issuing authority may at its discretion continue to exchange notes and coin for ones of equivalent face value of the current series after they have ceased to be legal tender.
Demonetisation
In this report, this term is used to signify an issuing authority's final renunciation of all liability to give value for notes or coins which have ceased to be legal tender but which have not been handed in for redemption or exchange.
Legal Tender
The quality of legal tender is assigned to physical currency by legislation, which prescribes that a creditor (including a vendor of goods or services) is obliged to accept such currency in discharge of the obligation of the person tendering it. Bank notes are always legal tender for a transaction of any amount, whereas coins are normally limited to a maximum aggregate face value for each transaction.
Physical Currency
Bank notes and coins as contrasted with bank money or scriptural money, i.e. claims on financial institutions (such as banks), which are acceptable when transferred from one holder to another in discharge of obligations, which are exchangeable on demand into
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