Which of the following phrases defines the nature of the 'Hundi' generally referred to in the sources of the post-Harsha period?
UPSC CSE Pre. 2020
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: A bill of exchange.
Option c is the correct answer.
A Hundi is a financial instrument that developed in Medieval India for use in trade and credit transactions. The hundi was a letter of credit payable after a period of time at a discount. The hundis often included insurance which was charged at different rates on the basis of value of the goods, destination, means of transport (land, river or sea), etc.