Types of Hundis
1. Darshani- Darshani is a hundi which is payable at sight. It is like a demand bill.
, it is negotiable. The party can sell them at par, premium, and discount.
The holder has to present the darshani for payment within a reasonable time of its receipt.
If the drawer faces any loss due to delay in presentation, the holder shall be responsible for it.
2. Miadi- miadi is something which is payable after a certain time period like a ‘time bill’. Banks generally provide loans for the security of such hundis.
3. Shahjog -This is a hundi made payable only to a Shah (a respectable person of financial worth and substance in the market). It is freely transferrable. But it is not payable to bearer. In general, it is similar to a crossed cheque.
4. Namjog-Under this hundi, the amount is payable to the party whose name is on it. Such an instrument is similar to a bill of exchange payable on order.
5. Dhanijog- ‘Dhani’ in local terms means owner. It is generally like a bearer cheque as the holder of it becomes a holder in due course if he takes it for value.
