Question map
Which of the following phrases defines the nature of the 'Hundi' generally referred to in the sources of the post-Harsha period ?
Explanation
The correct answer is Option 3.
In the economic history of the post-Harsha and medieval periods, a Hundi was a sophisticated financial instrument used by merchants and bankers. It functioned as a bill of exchange, serving as a written unconditional order involving a person directing another to pay a specific sum of money to a person named in the order.
The significance of the Hundi lies in its role in facilitating long-distance trade without the physical movement of bulky cash, thereby reducing the risk of theft. It acted as both a credit instrument and a means of remittance. Unlike the other options:
- Options 1 and 4 describe administrative or feudal commands (edicts/orders), whereas a Hundi was strictly a commercial document.
- Option 2 refers to a ledger or Bahi-Khata, used for record-keeping rather than financial transfer.
Thus, the Hundi represents the advanced indigenous banking system prevalent in pre-colonial India.
PROVENANCE & STUDY PATTERN
Full viewThis is a classic 'Term Definition' question. While the 'post-Harsha' tag adds a layer of specificity, the term 'Hundi' is a staple of Medieval Indian Economic History found in standard NCERTs and Economy texts. Do not overthink the timeline; if the term matches the function (Bill of Exchange), mark it.
This question can be broken into the following sub-statements. Tap a statement sentence to jump into its detailed analysis.
- Statement 1: In Indian history sources of the post-Harsha period, was "Hundi" an advisory issued by the king to his subordinates?
- Statement 2: In Indian history sources of the post-Harsha period, was "Hundi" a diary to be maintained for daily accounts?
- Statement 3: In Indian history sources of the post-Harsha period, was "Hundi" a bill of exchange?
- Statement 4: In Indian history sources of the post-Harsha period, was "Hundi" an order from the feudal lord to his subordinates?
This source poses a multiple-choice question asking which phrase defines the nature of 'Hundi' in post-Harsha sources and explicitly lists 'a bill of exchange' as an option contrasted with 'an advisory issued by the king'.
A student could take this classification clue and check contemporaneous economic/merchant records or standard histories to see if 'Hundi' is treated as a financial instrument rather than a royal advisory.
Describes a ministerial/council system (Mantri Parishad) where advice and advisories were part of polity, indicating that 'advisory' was a recognized administrative concept in the period.
A student could compare the kinds of documents produced by councils/ministers (edicts, orders, advisories) with references to 'Hundi' in epigraphic or literary sources to see if 'Hundi' matches those administrative genres.
Gives an example where magnates and ministers advised political action (inviting Harsha), showing 'advice' as a political mechanism and a possible semantic category for some documents.
One could use this example to ask whether 'Hundi' appears in contexts of political counsel or instead in commercial/financial contexts (supporting or refuting the 'advisory' reading).
This exam-style item lists possible definitions of 'Hundi' for the post-Harsha period and explicitly includes 'a diary to be maintained for daily accounts' as one option alongside 'a bill of exchange'.
A student could treat this as evidence that 'Hundi' has contested or clarified definitions in secondary sources and then consult primary/post‑Harsha documents or standard economic histories to see which option is supported.
Defines 'Hundi' as a financial instrument (bill of exchange) used in medieval Indian trade and credit, offering a clear alternative to the 'diary' definition.
A student could use this standard definition plus knowledge of medieval trade networks to infer whether 'diary' is plausible, then check primary records or epigraphical references for usage contexts.
- Explicitly defines hundi as a financial instrument and parenthetically as a 'Bill of Exchange'.
- Places hundi in the medieval Indian commercial and credit context, aligning with the post-Harsha timeframe.
- Describes merchants issuing 'bills of exchange, known as hundis' for transfer and cashing at destinations.
- Explains operational mechanism—hundi cashed by shroffs at a specified discount—matching bill-of-exchange function.
- Defines hundi as a written instruction to make payment to an individual and notes cross-border use.
- Emphasizes its role as a cashless payment instrument functioning like a precursor to modern banking.
Contains a multiple-choice question that lists possible definitions of 'Hundi' for the post-Harsha period, explicitly including 'a bill of exchange' and 'an order from the feudal lord to his subordinates'.
A student could combine this with external knowledge of medieval Indian economic terms to check which option is accepted in scholarly/primary-source usage.
States that the period after the Guptas and before Vardhanas had many independent sub-regional kingdoms and lacked a strong central power.
Use this political-fragmentation context to assess whether feudal orders (like a lord's written 'order') were common or whether commercial instruments might be more plausible.
Notes Harsha's rule over a large region and the rise of regional power under him, indicating overlapping suzerainty and subordinate relationships in the era.
Combine with basic facts about administrative practices under overlords to judge whether a term like 'hundi' could denote an overlord's order to subordinates versus a commercial instrument used across regions.
Describes conquest and integration of smaller kingdoms into Harsha's realm and mentions magnates and ministers advising elevation — illustrating lord-vassal dynamics.
A student could consider whether such magnate–vassal relations produced documentary orders termed 'hundi' or whether other documentary forms were used.
Hieun Tsang's account of law, order and administrative practices suggests formal mechanisms and records existed in the period.
Combine this with knowledge of documentary/financial practices to see if 'hundi' fits better as an administrative/feudal order or as a financial instrument circulating under such administrative order.
- [THE VERDICT]: Sitter. Directly covered in TN Class XI History (Ch 16) and Nitin Singhania (Ch 7). It is a fundamental term in Indian economic history.
- [THE CONCEPTUAL TRIGGER]: Medieval Economy > Trade and Commerce > Financial Instruments & Banking Systems.
- [THE HORIZONTAL EXPANSION]: Memorize related economic terms: 'Shroff' (Money changer), 'Sarthavaha' (Caravan leader), 'Shresthi' (Merchant/Banker), 'Manigramam/Nanadesi' (South Indian Guilds), 'Dadni' (Advance payment system), and 'Banjara' (Trading community).
- [THE STRATEGIC METACOGNITION]: Create a dedicated 'Glossary of Historical Terms' specifically for Administration and Economy (e.g., taxes, land grants, officials, financial instruments). UPSC asks 1-2 such definition questions every year.
The concept of a ministerial council explains how kings received advice and how advisory communications operated in the post-Harsha polity.
High-yield for UPSC because many questions ask about administrative mechanisms and the distinction between royal advice and orders; understanding the council clarifies whether terms implying 'advice' fit the political practice. It links polity, political history, and source interpretation and helps answer questions on decision-making and delegation in medieval India.
- History , class XI (Tamilnadu state board 2024 ed.) > Chapter 8: Harsha and Rise of Regional Kingdoms > Council of Ministers > p. 108
- History , class XI (Tamilnadu state board 2024 ed.) > Chapter 8: Harsha and Rise of Regional Kingdoms > Pushyabhutis 8.1 > p. 105
Inscriptions and other epigraphical records are the main documentary bases for reconstructing post-Harsha institutions and terminology.
Essential for UPSC aspirants because source-based questions require judging meanings of historical terms using inscriptions and epigraphs; mastering this helps evaluate claims about administrative instruments or financial instruments in medieval India. It connects history methodology with political and economic history.
- History , class XI (Tamilnadu state board 2024 ed.) > Chapter 8: Harsha and Rise of Regional Kingdoms > II. Write Brief Answers > p. 115
- History , class XI (Tamilnadu state board 2024 ed.) > Chapter 8: Harsha and Rise of Regional Kingdoms > Pulikesin II, the Chalukya King > p. 106
Hundi was a medieval financial instrument used in trade and credit, not a daily diary.
High-yield for economic and medieval history questions: recognizing hundi as a precursor to modern bills of exchange and banking clarifies trade-credit mechanisms, helps link commercial institutions to political and social changes, and is often tested in questions on medieval economy.
- Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 7: Money and Banking > HUNDI > p. 194
Understanding the categories of sources used for post-Harsha period study helps locate where references to financial instruments like hundi would appear.
Mastering source types is essential for source-based questions and historiography topics; it allows candidates to evaluate evidence reliability, contextualize documents and inscriptions, and infer where economic instruments would be recorded.
- History , class XI (Tamilnadu state board 2024 ed.) > Chapter 12: Bahmani and Vijayanagar Kingdoms > Sources > p. 176
- History , class XI (Tamilnadu state board 2024 ed.) > Chapter 8: Harsha and Rise of Regional Kingdoms > II. Write Brief Answers > p. 115
Medieval trade and credit systems explain the practical role and usage of hundis in market transactions across regions.
Understanding commercial mechanisms enables answers on economic structures, regional trade networks, and evolution of banking; it links to syllabus areas on economic history, urbanization, and administrative practices.
- Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 7: Money and Banking > HUNDI > p. 194
- History , class XI (Tamilnadu state board 2024 ed.) > Chapter 12: Bahmani and Vijayanagar Kingdoms > Sources > p. 176
Hundi functioned as a transferable written instrument instructing payment, equivalent to a bill of exchange.
High-yield for medieval Indian economic history: helps answer questions on credit instruments, commercial practices, and evolution of banking. Connects to topics on merchant networks and monetary instruments enabling long-distance trade.
- Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 7: Money and Banking > HUNDI > p. 194
- History , class XI (Tamilnadu state board 2024 ed.) > Chapter 16: The Coming of the Europeans > Banking and Rise of Merchant Capitalists > p. 247
Hundi enabled merchants to move value across political boundaries without carrying currency.
Important for questions on trade infrastructure and merchant capital; links to topics on risks of transporting coinage, discounting, and the growth of merchant communities and financial intermediaries.
- History , class XI (Tamilnadu state board 2024 ed.) > Chapter 16: The Coming of the Europeans > Banking and Rise of Merchant Capitalists > p. 247
- Exploring Society:India and Beyond ,Social Science, Class VIII . NCERT(Revised ed 2025) > Chapter 2: Reshaping India’s Political Map > DON'T MISS OUT > p. 57
Since Hundi is asked, look out for 'Nivi-dharma' (land tenure system regarding perpetual endowment) or 'Akshaya-nivi' (perpetual fund) in Ancient India. Also, distinguish between 'Darshani Hundi' (payable on sight) and 'Muddati Hundi' (payable after a period).
Linguistic/Contextual Hack: The word 'Hundi' is still used in Indian business vernacular (and news regarding Hawala rackets) to mean money transfer. Options A, B, and D are administrative/political (Advisory, Diary, Order). Option C is the only 'Financial/Economic' option. If you know Hundi = Money, C is the only logical choice.
Links to GS-3 (Money & Banking): Hundi is an indigenous 'Negotiable Instrument'. It connects to the modern problem of 'Hawala' transactions and the informal money market, showing the historical roots of non-institutional banking in India.