UPSC Previous Year Question | Prelims GS | 2020

Which of the following phrases defines the nature of the 'Hundi' generally referred to in the sources of the post-Harsha period?

  1. An advisory issued by the king to his subordinates
  2. A diary to be maintained for daily accounts
  3. A bill of exchange
  4. An order from the feudal lord to his subordinates

Answer

Correct Answer

A bill of exchange

Explanation

A hundi was an indigenous credit instrument, an unconditional written order to pay a sum to a named person, and it functioned as a bill of exchange.

Topics: ancient & early medieval india, economy, history, hundi - bill of exchange, trade & money