Forms of exchange hundi and kauri in medieval india
Answers
Answer:
Types of Hundis
1. Darshani
Darshani is a hundi which is payable at sight. It is like a demand bill. Moreover, it is negotiable. The party can sell them at par, premium, and discount. The holder has to present the darshani for payment within a reasonable time of its receipt. If the drawer faces any loss due to delay in presentation, the holder shall be responsible for it.
2. Miadi
Also called as muddati, miadi is something which is payable after a certain time period like a ‘time bill’. Banks generally provide loans for the security of such hundis.
3. Shahjog
This is a hundi made payable only to a Shah (a respectable person of financial worth and substance in the market). It is freely transferrable. But it is not payable to bearer. In general, it is similar to a crossed cheque.
4. Namjog
Under this hundi, the amount is payable to the party whose name is on it. Such an instrument is similar to a bill of exchange payable on order.
5. Dhanijog
‘Dhani’ in local terms means owner. It is generally like a bearer cheque as the holder of it becomes a holder in due course if he takes it for value.
Solved Question on Hundi
Question: Briefly explain the ‘Jokhmi Hundi’.
Answer: The term ‘Jokhmi’ has come from the Hindi word ‘jokhim’ meaning ‘risk’. It is generally drawn against goods shipped on a vessel and shows a certain risk involved in the shipment of goods. Jokhmi hundi is a combination of a bill of exchange and an insurance policy and payable only when the goods reach in safe and secure condition.
If anything wrong happens to the goods during transit then the consignor cannot claim payment of the hundi from the consignee. Thus, a jokhmi hundi safeguards the interests of both the parties. It acts as a bill of exchange if the goods arrive securely and if the goods are lost or destroyed in transit, such a bill acts as an insurance cover.
Explanation:
Answer:
Types of Hundis
1. Darshani
Darshani is a hundi which is payable at sight. It is like a demand bill. Moreover, it is negotiable. The party can sell them at par, premium, and discount. The holder has to present the darshani for payment within a reasonable time of its receipt. If the drawer faces any loss due to delay in presentation, the holder shall be responsible for it.
2. Miadi
Also called as muddati, miadi is something which is payable after a certain time period like a ‘time bill’. Banks generally provide loans for the security of such hundis.
3. Shahjog
This is a hundi made payable only to a Shah (a respectable person of financial worth and substance in the market). It is freely transferrable. But it is not payable to bearer. In general, it is similar to a crossed cheque.
4. Namjog
Under this hundi, the amount is payable to the party whose name is on it. Such an instrument is similar to a bill of exchange payable on order.
5. Dhanijog
‘Dhani’ in local terms means owner. It is generally like a bearer cheque as the holder of it becomes a holder in due course if he takes it for value.
Solved Question on Hundi
Question: Briefly explain the ‘Jokhmi Hundi’.
Answer: The term ‘Jokhmi’ has come from the Hindi word ‘jokhim’ meaning ‘risk’. It is generally drawn against goods shipped on a vessel and shows a certain risk involved in the shipment of goods. Jokhmi hundi is a combination of a bill of exchange and an insurance policy and payable only when the goods reach in safe and secure condition.
If anything wrong happens to the goods during transit then the consignor cannot claim payment of the hundi from the consignee. Thus, a jokhmi hundi safeguards the interests of both the parties. It acts as a bill of exchange if the goods arrive securely and if the goods are lost or destroyed in transit, such a bill acts as an insurance cover.