Types of Hundi Explained: Shah Jog Hundi, Jokhmi Hundi, Nam Jog Hundi, Jawabee Hundi, When delving into the intricacies of the Negotiable Instruments Act, it becomes imperative to grasp the concept of a hundi and its diverse variations. In straightforward terms, the term “hundi” encompasses all negotiable instruments, whether they take the form of bills of exchange or promissory notes. For an instrument to qualify as a hundi, it must be legally actionable by the holder in their own name and possess transferability akin to cash, achieved through simple delivery. Explore further details on the various “Types of Hundi” below.
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Types of Hundi Explained
Explore the diverse types of hundis that play distinct roles within financial transactions:
1. Shah Jog Hundi:
This type is payable exclusively to a respectable holder, requiring the drawee to ensure the payee’s standing in the market before honoring the hundi.
2. Jokhmi Hundi:
Drawn against goods shipped on a specified vessel, this hundi is contingent upon the safe arrival of the goods, functioning akin to an insurance policy.
3. Jawabee Hundi:
Utilized for remitting money from one location to another, a person drafts a letter to the payee, which is then delivered through a banker or corresponding network.
4. Nam Jog Hundi:
Specifically naming the payee in the hundi, it remains payable only to the party mentioned, with any alteration to Shah Jog rendering it void.
5. Darshani Hundi:
Payable at sight, freely negotiable, and regulated by demand and supply, these hundis must be presented for payment within a reasonable time.
6. Miadi Hundi:
Also known as muddati hundi, it entails payment after a specified period, often involving advances provided by shroffs.
7. Dhani Jog Hundi:
Payable to the owner, “Dhani,” this hundi follows a distinct payment pattern.
8. Firman Jog Hundi:
Payable to order through endorsement and delivery, this hundi offers flexibility in negotiation.
Types of Hundi FAQ
Shah Jog Hundi is payable exclusively to a respectable holder, requiring the drawee to verify the payee’s credibility before honoring the hundi.
Jokhmi Hundi is drawn against goods shipped on a specified vessel, with payment contingent upon the safe arrival of the goods.
Jawabee Hundi is used for remitting money, involving a letter sent to the payee through a banker or corresponding network.
