Question

What was hundi ? Why it was important for traders to buy it ?

Answer 1

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.

Answer 2

Answer:

What was hundi ?

A financial instrument that developed in Medieval India for use in trade.

Why it was important for traders to buy it ?

So they could transfer money from place to place, now it is illegal to do so without banks permission