Explain the legal tender character of notes under RBI Act, 1934.

Section 26(1) of the Reserve Bank of India Act, 1934 states that subject to the provisions of sub-section (2), every bank note shall be legal tender at any place in India in payment or on account for the amount expressed therein, and shall be guaranteed by the Central Government. Section 26(2) empowers the Central Government, on recommendation of the Central Board, by notification in the Gazette of India to declare that, with effect from such date as may be specified in the notification, any series of bank notes of any denomination to cease to be legal tender save at such office or agency of the Bank and to such extent as may be specified in the notification. Legal Tender is a coin or a banknote that is legally tenderable for discharge of debt or any financial obligation.