Question

what was a hundi?why was it important for the traders to buy a 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.

Answer 2

Answer:

A hundi is a financial instrument that developed in Medieval India for use in trade and credit transactions. Hundis are used as a form of remittance instrument to transfer money from place to place, as a form of credit instrument or IOU to borrow money, and as a bill of exchange in trade transactions.

Hundi is a promissory note or a bill of exchange used to remit money from one end to the other. The 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.