Legal tender is any form of payment recognized by law that a creditor is legally obligated to accept for the settlement of a debt or financial obligation. In India, currency notes issued by the RBI and coins issued by the Government of India constitute legal tender.

Why Option B is correct: The defining characteristic of legal tender is the legal compulsion on the creditor. If a debtor offers legal tender to settle a claim, the creditor cannot refuse it and subsequently sue for non-payment of the debt.

Why Option C is incorrect: Bank money such as cheques, drafts, and bills of exchange are considered 'fiduciary money.' Their acceptance depends on the trust between the parties involved; a creditor is not legally compelled to accept a cheque and can insist on payment in cash (legal tender).

Why Option D is incorrect: While metallic coins are indeed legal tender (under the Coinage Act, 2011), legal tender also includes paper currency notes. Therefore, defining it solely as metallic money is incomplete.