Hundi in general context is a big metal box in temple where devotees deposit money for the development of temple in India.
In medieval context, Hundi is was an indigenous bill of exchange in Mughal India, it promised payment
after a specified period (two months or less) at a
particular place allowing a discount which included
interest, insurance charges and cost of transmission
of money. Hundis increasingly
became the standard
form of payment in major commercial transactions
in the 18th cen- tury.
In the long distance trade they not
only met the requirements of an expanding demand for
credit, but reduced the risks involved in the transmission
of cash to distance places. Their business was mainly in
the hands of professional money changers or bankers,
called the sarrafs.
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