Which of the following phrases defines the nature of the ‘Hundi’ generally referred to in the sources of the post-Harsha period?
[UPSC Civil Services Exam – 2020 Prelims]
(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
- The hundi emerged as a financial instrument during Medieval India and was utilized in various trade and credit activities. It served multiple purposes, including:
- Remittance: Hundis were employed as instruments to transfer funds from one location to another.
- Credit: They functioned as credit instruments, enabling individuals to borrow money.
- Trade Transactions: Hundis served as bills of exchange in trade transactions, facilitating commercial activities.
Therefore, option (c) is the correct answer.