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 was a financial instrument used in ancient and medieval India, functioning similarly to a modern bill of exchange. It allowed for the transfer of money without the physical movement of currency, facilitating trade and remittances across regions. Merchants and traders utilized Hundis for secure and efficient transactions, especially over long distances.
Source: UPSC gs1 2020