What is the difference between Hawala and Hundi?

Hawala and hundi are two different words that are used to describe the same informal system of money transfer. Hawala is the Arabic word for "transfer" or "remittance," while hundi is the Hindi word for "bill of exchange" or "promissory note." Both terms are used interchangeably to refer to the same system of money transfer, which is based on trust and personal relationships between a network of agents, known as hawaladars.

The main difference between hawala and hundi is the language in which the terms are used. Hawala is commonly used in the Middle East and North Africa, while hundi is more commonly used in South Asia. However, both terms refer to the same informal system of money transfer, which operates outside of the formal banking system and relies on trust and personal relationships between hawaladars.