gs1medium
Which of the following phrases defines the nature of the ‘Hundi’ generally referred to in the sources of the post-Harsha period?
- A.An advisory issued by the king to his subordinates
- B.A diary to be maintained for daily accounts
- C.A bill of exchange
- D.An order from the feudal lord to his subordinates
▶ Answer & Explanation
Correct answer: C. A bill of exchange
A 'hundi' in ancient and medieval Indian history, particularly prominent in the post-Harsha period, functioned as a financial instrument. It essentially served as a credit instrument that allowed merchants to transfer money from one place to another without physically carrying cash, thereby facilitating trade and commerce over long distances. This mechanism is analogous to a modern bill of exchange or a cheque.
Source: UPSC gs1 2020