if royal bank of scotland issues banknotes are not acceptable than why the scotish goverment keep on circulati

Answer 1

RBS bank notes are legal tender all around the UK, but for some reason mainly English shops in the south east of the UK are quite snooty about accepting these notes, this is very infuriating as we accept bank of England notes without questioning the buyers integrity

Answer 2

“The concept of legal tender is often misunderstood. Contrary to popular opinion, legal tender is not a means of payment that must be accepted by the parties to a transaction, but rather a legally defined means of payment that should not be refused by a creditor in satisfaction of a debt. This makes legal tender a rather narrow legal concept that has little to do with the way in which most payments are made. In practice, people are often willing to accept payment by cheque, standing order, debit or credit card – in fact by any instrument that they are confident will deliver value.”

Under this narrow legal definition Scottish banknotes have never, even in Scotland, except for two very short periods during the two World Wars, been legal tender. Bank of England banknotes are also not legal tender in Scotland under this definition. Only coins from the Royal Mint are legal tender in Scotland and even these are subject to limitations, e.g. £1 worth of 1p coins is legal tender but £1.01 is not. £1 and £2 coins are legal tender in Scotland to unlimited amounts.

However, this does not detract from the value of Scottish banknotes as money. They carry a promise to pay which means that, should a note be presented at the headquarters of the issuing bank, the bank promises to exchange it for an equal amount of legal tender, hence cancelling the debt. This is backed up by the holdings of the issuing bank, which cannot issue more banknotes than it has holdings to cover. In the case of Scottish banks these holdings are expressed mostly in terms of Bank of England banknotes. These Bank of England banknotes are, in turn, backed by the holdings of the Bank of England.

Answer 3

The Scottish government (Executive) does not issue bank notes. Notes issued by the Bank of Scotland, Royal Bank of Scotland and the Clydesdale Bank are issued by the banks themselves and not underwritten by the government of the UK or by the Scottish Executive. Scottish issuing banks have had their rights to issue notes guaranteed by UK statute for almost 200 years.
Just like Bank of England notes (which are guaranteed by the UK government) they have precisely no value. They are, if you look really, really closely, just bits of paper. They have a value only because we all agree they have a value. Many shops in England, and businesses overseas refuse to accept these notes. That implies that they fear the Royal Bank of Scotland - the third largest financial organisation in the world - isn't good for £10. It is an example of ignorance and nothing more.
If you want to change that note for a note underwritten by the Bank of England, go to a bank and they will do it for you.

Answer 4

Scottish and NI Notes are legal tender in England and Wales.

Where it falls down is most checkout operators take one look at them and say no, cause they do not know any better.

I have this problem regularly, as I travel to Scotland & Ireland on a weekly basis (where there is no problem with any other notes).

If somebody refuses my notes in England, I will point out they are legal tender, if that does not work, I usually walk out leaving my goods on the counter. Stating other shops will be gratful for my business: Petty, but make me feel better.

Answer 5

Scottish banknotes are legal tender....However a lot of places in England won't take them so I usually get English notes at the bank before I go down South.

Answer 6

The facts are Scottish notes are not legal in England. They are however be used within English banks or exchanged. So in relantly can be use to pay foe items in Engalnd.

Scottish notes are like paper IOU's that why the words the bearer on demand is printed on them by the bamks governor.

Glad to help.

Answer 7

RBS banknotes are legal tender in the whole of the UK as far as I'm aware. Anywhere that does not accept them is in theory breaking the law.

Answer 8

Scottish niotes are legal tender in the UK but there was a spate of very good forged £20 notes in circulation...so many of the smaller traders refuse to accept them as they cannot stand the cost of the forgeries on their business

Answer 9

Why would Scottish notes not be acceptable? They are legal tender and they actually say sterling on them, unlike the English notes.

Answer 10

They ARE acceptable!

For every £1 they issue they have to keep £1(English) in their vaults to keep the Money Supply level equal.