Under the Coinage Act, 2011 in India, what is the maximum amount up to which coins of one rupee and above are legal tender in a single transaction?

Introduction / Context:
Legal tender rules specify how coins and notes can be used to settle debts. For competitive exams and banking interviews in India, questions often test knowledge of the Coinage Act, 2011 and the limits on using coins for payments.

Given Data / Assumptions:
- The question refers to the Coinage Act, 2011, which sets legal tender limits for coins in India.
- It asks specifically about coins of denominations not lower than one rupee, that is one rupee and higher coin denominations.
- We must identify the maximum sum that such coins can be used for in any one transaction.

Concept / Approach:
According to the legal provisions, coins of any denomination not lower than one rupee are legal tender for any sum not exceeding a specified limit in a single transaction. This is meant to prevent inconvenience caused by very large payments being offered entirely in coins. For Indian law under the Coinage Act, 2011, this limit is one thousand rupees in any single transaction. Therefore, a person cannot insist on paying a very large bill entirely in rupee coins beyond that threshold.

Step-by-Step Solution:
Step 1: Focus on the phrase coins of any denomination not lower than one rupee, which excludes small coins like 25 paise that are no longer legal tender.
Step 2: Recall or look up the legal limit for such coins under the Coinage Act, 2011.
Step 3: Note that the Act provides that such coins are legal tender for a sum not exceeding one thousand rupees in any single payment.
Step 4: Map this limit to the given options and select 1000 as the correct answer.

Verification / Alternative check:
You can test the logic by thinking of practical scenarios. For large value transactions, notes and electronic payments are normally used. A limit of one thousand rupees in coins seems reasonable for day to day use while avoiding impractically large quantities of coins for big bills. This fits the intent of the law better than very low or extremely high limits.

Why Other Options Are Wrong:
Option A, 100, and Option B, 200, are lower amounts and do not reflect the legal limit for rupee coins under the Coinage Act. Option C, 500, is also below the correct legal threshold. None of these match the statutory one thousand rupee cap for a single transaction using rupee coins as legal tender.

Common Pitfalls:
Some candidates memorise limits for different coin denominations but mix them up in the exam. For example, fifty paise coins are legal tender only up to a lower limit, whereas one rupee and higher coins have the one thousand rupee limit. Keeping these two separate figures in mind and linking them to the correct denominations avoids confusion in multiple choice questions.

Final Answer:
Correct option: 1000.