Question

Explain various types of Hundies.

Hint:

Understand the payment terms to identify the type of Hundi.

Answer 1

Step 1:
A Darshani Hundi is payable on sight or presentation to the drawee, requiring immediate payment.
Step 2:
A Muddati Hundi is payable after a specified period or on a fixed date, allowing deferred payment.
Step 3:
A Shahjog Hundi is drawn by a known and reputed drawer on a person with whom the drawer has business relations. A Namjog Hundi is payable to the order of a specific person, while a Jokhim Hundi is drawn without specifying the drawee, carrying higher risk.
Step 4:
These types serve various trade and credit needs in traditional commerce.