Question

What were the different types of Hundi in use by traders in ancient times?

Answer 1

The different types of Hundi used by traders are as follows:
a. Dhani-jog: This type of Hundi is payable to any person without putting any liability on the person who receives the payment. The broader function of Hundi is Darshani.
b. Sah-jog: This type of Hundi is payable to a specific person, especially someone who is deemed as respectable while putting a liability on the person who receives the payment. The broader function of Hundi is Darshani.
c. Firman-jog: This type of Hundi is payable on order. The broader function of Hundi is Darshani.
d. Dekhan-har: This type of Hundi is payable to the presenter or the bearer. The broader function of Hundi is Darshani.
e. Dhani-jog: This type of Hundi is payable to a person (called Dhani, who purchases it) without putting any liability over who receives the payment. However, the payment is done over a fixed time period. The broader function of Hundi is Muddati.
f. Firman-jog: This type of Hundi is payable to order following a fixed term. The broader function of Hundi is Muddati.
g. Jokhmi: This type of Hundi is drawn against dispatched goods. Herein, in case the goods are lost during the transit, then the drawer bears all the costs without putting any liability on the Drawee. The broader function of Hundi is Muddati.