Different Types of Hundis :

The most common types of hundis are the following:

(i) Shah Jog Hundi:- In this case, apart from a drawer and a drawee, there is another party to the instrument known as Shah (a financial of repute). It is only payable to Shah. The function of the Shah is that he presents the hundi, when it eventually comes to him for payment to the drawee on behalf of the holder. In so far this Shah acts like a banker to whom a cheque has been endorsed specially.

(ii) Jokhmi Hundi: The term “Jokhmi” itself means “against risk”. It is documentary bill which is drawn by a consignor or the consignee in respect of goods shipped by the consignor. The name of the vessel by which the goods have been shipped is also mentioned in the hundi. The consignee is not required to pay the hundi unless the goods reach their destination. If, however, the ship is lost , the consignor or the person with whom he has negotiated the hundi, has to suffer the loss .

(iii) Nam Jog Hundi: It is a hundi payable to the party named therein or to his order. The party, however, has a right to endorse it in favour of any other person as can be done in case of any other bill of exchange.

(iv) Jawabee Hundi: It is an instrument for remitting money and takes the form of ordinary letter advising the party that he may collect money from a banker. The remitter hands over the hundi to his banker who in turn endorses it to a correspondent residing near the payees place of residence. The correspondent on receiving the letter forwards it to the payee who attends and gives his receipt in the form of an answer to the letter which is forwarded by the same channel to the drawer of the order..

(v) Dhani Jog Hundi: This is a Hundi payable to Dhani or owner i.e. a person who purchase it.

(vi) Firman Jog Hundi: This is a Hundi payable to order. Certain terms explained

(i) Zikri Chit: According to the usage shroffs in the case of Marwari hundis, a hundi may be accepted for honour It is a letter of protection addressed to a merchant in the town where a hundi is payable and issued to the holder of the hundi by some prior party liable thereon. The letter, it is intended, would be used by the holder if the hundi is dishonoured by nonacceptance.

The letter contains a request to the merchant that he may accept the hundi in case of dishonour.

(ii) Peth and Perpeth : Peth is the duplicate copy of hundi, issued on the loss of the original hundi, and perpeth is the triplicate copy of the hundi given on the loss of the peth.

(iii) Khoka : After a hundi has been paid and cancelled it is called a Khoka. Classification of hundis according to time of payment : Hundis payable at darshan or sight are known as darshani hundis and those payable at a certain period after date are known as miadi hundis. A darshani hundi is transferable by endorsement. In drawing a miadi hundi, the interest for the period of hundi is charged. A miadi hundi is known in Bengali as the muddati hundi.