How did bills of exchange help move Mughal revenue from provinces to the imperial center?

In the Mughal Empire, the use of bills of exchange, known as hundis, was a critical mechanism for transferring revenue from the provinces to the imperial center. As the empire’s fiscal system became increasingly monetized, these negotiable instruments allowed the state to move large sums of money without the logistical risks and costs associated with transporting physical currency across vast distances.1

This process relied on a sophisticated financial network of money changers, known as sarafs (or shroffs), who facilitated the exchange. By utilizing hundis, the Mughal administration effectively meshed its fiscal operations with these private financial networks. This integration not only streamlined the transfer of tax revenue collected in the provinces but also reflected the broader economic expansion and increased use of money that characterized the 17th-century Mughal economy.1