Money-market-and-capital-market-in-india-intruments-and-dynamics / Money Market and Capital Market in India - Intruments and Dynamics / Hundi.
- Definition:
- A Hundi is a written order issued by one person, directing another to pay a specified sum to a person named in the order or to the bearer of the communication.
- Historical Use:
- Hundis evolved in India and were legal financial instruments. In the absence of an extensive banking system, they were used for trade, credit transactions, and remittance purposes.
- Informal Nature:
- Hundis were part of an informal system and were not covered under the Negotiable Instruments Act, 1881.
