Which of the following phrases defines the nature of the ‘Hundi’ generally referred to in the sources of the post-Harsha period? (2020)

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YESPYQ · Accepted Answer

Correct answer: A bill of exchange. Hundis are used as a form of remittance instrument to transfer money from place to place. It was used as a form of credit instrument or IOU to borrow money and as a bill of exchange in trade transactions. The Hundis was a letter of credit payable after a period of time. The word &quot;hundi&quot; is often linked to the Sanskrit root &quot;hundika,&quot; meaning a type of bill or note. The Lekhapaddhati (12th century, in post-Hrasha period) refer to the use of hundika by kings and nobles to make payments but it may have been used by merchants as well. Hundis were widely used during the post-Harsha period (7th century onwards) and played a significant role in the growth of trade and urbanization in India.

Which of the following phrases defines the nature of the ‘Hundi’ generally referred to in the sources of the post-Harsha period? (2020)

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