Fungibility refers to the property of an asset where each unit is identical and interchangeable with another unit of the same type.
An asset is fungible if one unit can be replaced by another without any difference in value or function. This concept is essential in finance, trading, and economics.
For example, one ₹500 note is equal in value to another ₹500 note—making currency fungible.
"If you lend ₹1,000 to someone, they can return any ₹1,000—not the exact same notes—because money is fungible."