Question

What is hundi?????????????????????

Answer 1

Answer:

Hundi is a promissory note or a bill of exchange used to remit money from one end to the other. he Reserve Bank of India describes the Hundi as "an unconditional order in writing made by a person directing another to pay a certain sum of money to a person named in the order.

For example: Mr. A signs a hundi / promissory note to pay B , say Rs.10,000/- after 90 days .

So, B will get the money only after 90 days from A on showing him the promissory note he signed.

(I am keeping the explanation as simple as possible.)

Now , you may have read something about bill discounting which is possible in this case as well. So A can get his money on the very same day of signing the instrument.

It is believed that this practice is not prevalent anymore. Which is not true.

I hope this answers your question.

Explanation:

Answer 2

Answer:

Hundi is a promissory note or a bill of exchange used to remit money from one end to the other. he Reserve Bank of India describes the Hundi as "an unconditional order in writing made by a person directing another to pay a certain sum of money to a person named in the order.