Trade And Commerce

Banjaras during the medieval period of Indian history were generally traders. They were nomadic communities known for transporting goods like salt, grain, cattle, and other necessities across long distances using bullock caravans called tandas. They played a crucial role in facilitating trade and commerce within the Indian subcontinent.

The phrase that best defines the nature of the Hundi generally referred to in the sources of the post-Harsha period is: A bill of exchange. **Hundi as a Financial Instrument:** Hundis were instruments used in trade and credit transactions during the medieval period in India. **Functions of a Bill of Exchange:** A bill of exchange is a written order issued by one person (drawer) to another (drawee) to pay a specified sum of money to a third party (payee) at a future date. This aligns with the functionality of a Hundi. Merchants used Hundis to facilitate trade by - **Securing Payments:** They could issue a Hundi to the seller upon receiving goods, instructing their bank or agent (drawee) at the seller's location to pay the specified amount. - **Obtaining Credit:** Merchants could also use Hundis to obtain credit. They could draw a Hundi against future earnings and have it discounted by a money lender for immediate cash.