DARE - Because Entrepreneurs Do

Banks are always coming up with new ideas and offers that could engage their customers—one of the areas where banks like to focus is to ease the processing of transactions. However, lots of technology and back-end support is needed to ensure that the money itself remains safe from frauds. 

ATM cards have been one of the most successful offers that banks have made in the recent past. Credit cards are also there but lots of users feel skeptic about their security. Let’s discuss an option that resembled ATM cards and was used in old times. 

If you have read something in historical books, there is a mention of a system or an item called ‘hundi’, where ‘d’ is not soft when it is pronounced. This ‘hundi’ worked like an ATM card of contemporary times. Just like an ATM card, ‘hundi’ eliminated the need to carry cash. Cash could have been debited from a person in far off place in whose name it was written—just like an ATM card works that can be used to debit money from a machine in other places.

In old times, whenever somebody wanted to visit another city or a faraway place, a ‘hundi’ was made against the deposit of cash and written in the name of the person who would encash that ‘hundi’ when presented. ATMs cards offer the same option whereby a person can deposit money in one bank and can avail the cash at another place by using this ATM card. 

However, there were some issues that limited the usage of ‘hundi’ just like an ATM:

1. It could be operated in one far-off place for which it had been addressed.
2. The money could be gotten from the person only who had been addressed. If the issuing person has collaborations with some other people in those other places, they won't encash that 'hundi'.
3. Working during night was not available—because the person who could provide cash against the ‘hundi’ might have closed the shop.
4. There were no passwords to secure it.
5. It was for SINGLE use only and could not be used repeatedly.

There are more differences than similarities but the main working principle of a 'hundi' and an ATM card is one same lines. 

At the end, it can be postulated that some of the old concepts still hold good admitting that advancement and enhancement of processes can’t not be spared for the usage of these concepts in modern times.