<P> Dubai has been prominent for decades as a welcoming hub for hawala transactions worldwide . </P> <P> The hundi is a financial instrument that developed on the Indian sub-continent for use in trade and credit transactions . Hundis are used as a form of remittance instrument to transfer money from place to place, as a form of credit instrument or IOU to borrow money and as a bill of exchange in trade transactions . The Reserve Bank of India describes the Hundi as "an unconditional order in writing made by a person directing another to pay a certain sum of money to a person named in the order ." </P> <P> The word angadia means courier in Hindi, but also designates those who act as hawaladars within India . These people mostly act as a parallel banking system for businessmen . They charge a commission of around 0.2--0.5% per transaction from transferring money from one city to another . </P> <P> According to the CIA, with the dissolution of Somalia's formal banking system, many informal money transfer operators, arose to fill the void . It estimates that such hawaladars, xawilaad or xawala brokers, are now responsible for the transfer of up to $1.6 billion per year in remittances to the country, most coming from working Somalis outside Somalia . Such funds have in turn had a stimulating effect on local business activity . </P>

What is second channel bank account in india