Which of the following phrases defines the nature of the 'Hundi' generally referred to in the sources of the post-Harsha period ?

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UPSC Civil Services Exam (Prelims) GS Official Paper-I (Held On: 2020)
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  1. An advisory issued by the king to his subordinates
  2. A diary to be maintained for daily accounts
  3. A bill of exchange
  4. An order from the feudal lord to his subordinates

Answer (Detailed Solution Below)

Option 3 : A bill of exchange
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The Correct Answer is option 3.Key PointsHundi:

  • It is a financial instrument that developed in Medieval India for use in trade and credit transactions.
  • They were used
    • As remittance instruments (to transfer funds from one place to another)
    • As credit instruments (to borrow money)
    • trade transactions (as bills of exchange).
  • Hence option 3 is correctAdditional Information
  • The period assigned to Harsha or Harsha Vardhana reign is 606 AD until 648 AD. 
  • Chinese Pilgrim Huen Tsang visited Harsha.
  • Harshacharita was authored by Banabhatta.
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