Q. The term “banias” is related to which of the following?
Explanation: Commercial institutions were also well developed to promote such extensive trade.
- Because a variety of coins were in circulation, there were money-changers or shroffs to test coins for their purity and decide their value in current terms. They also served as local bankers.
- Instead of transferring money as cash from one place to another, merchants issued bills of exchange, known as hundis which would be cashed by shroffs at different destinations at a specified rate of discount.
- This well-developed infrastructure and organization of trade enabled the rich merchants to amass large fortunes.
- Such merchant princes or capitalists were found in all parts of India – the banias and Parsi merchants of Surat, the nagarseths of Ahmedabad, the Jagat Seths of Bengal, and the merchant communities of the Coromandel.
Source: Tamil Nadu NCERT