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

Correct Option (C)

A Hundi was a financial instrument widely used in the Indian subcontinent, particularly from the post-Harsha period (roughly 7th century CE onwards). It functioned as a bill of exchange, serving as a credit instrument and a means of remitting money. Merchants extensively used Hundis to transfer funds from one place to another without physically moving cash, or to secure loans. This system was a sophisticated indigenous banking practice that facilitated long-distance trade and commerce in medieval India.

Incorrect Options:

Options A and D suggest that a Hundi was an administrative order or advisory issued by a king or feudal lord to subordinates. This is incorrect. Hundis were commercial and financial instruments, primarily used by merchants and traders for economic transactions, not for administrative directives or governance.

Option B proposes that a Hundi was a diary for daily accounts. This is also incorrect. While merchants maintained detailed account books, a Hundi itself was a specific negotiable instrument for transferring funds or credit, distinct from a general ledger or a daily diary of transactions.