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Sunday, July 26, 2020

Hundi


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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