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The legal tender status given by the government to money may be limited or unlimited.
i) Limited legal tender. It is that money which no person can be forced to accept beyond a certain maximum limit fixed by law. For instance in India, coins are limited legal tender because coins of 5, 10, 20 and 25 paise can be accepted up to maximum sum of र 1000 as per Coinage bill passed on 11th Aug. 2011. One can refuse payments by an individual in these small coins beyond this limit.
(ii) Unlimited legal tender. It is the money which a person has to accept up to any limit. There is no limit to quantity of money offered in payment. For example in India, paper notes are unlimited legal tender because all currency notes can be used to settle payments of unlimited value.
Note: that currency notes of denomination of र 2 and above are issued by RBI whereas one Rupee note and coins are issued by Ministry of Finance - Government of India.