hundi
A hundi is a traditional negotiable instrument used in the Indian subcontinent for remittance and trade finance. It operates as an informal credit or money-transfer device that predates modern banking and is closely associated with the hawala system. A hundi can take the form of a promissory note or a bill of exchange, payable to a bearer or to a specified recipient, and is typically settled through a network of brokers who transfer value across long distances without physical money movement, relying on trust and reciprocal obligations.
Originating in medieval and early modern commerce, merchants used hundi to finance trade, remit funds across
In practice, a sender gives funds to an agent who issues a hundi; the recipient, at another
Hundis are not generally recognized as legal tender; their validity depends on contract law and the terms
Today, hundis persist in some informal economies and among certain communities as a faster or cheaper alternative