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What is hundi explain?

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What is hundi explain?

Posted by Anshuja Sharma 4 years, 3 months ago

CBSE > Class 11 > Business Studies

1 answers

Gaurav Seth 4 years, 3 months ago

Hundi is a negotiable financial instrument which consists of an unconditional contract to warrant the payment of money, the promise or order. This word has come out from the Sanskrit word ‘hundi’ which means ‘to collect’.

A hundi is a negotiable instrument. But it is not necessary to be a bill of exchange as given in the Act. Hundis are famous among Indian traders. Specifically, it is famous amongst those operating in suburban areas. These are under control of the Negotiable Instrument Act,1881 unless there is a local usage to the contrary.

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