Angadia System

February 24, 2022

Recently, an FIR was registered against three Mumbai Police officials for allegedly threatening Angadias and extorting money from them. Before this, Angadias shop in Mulund was looted by robbers.

What is Angadia system?

Angadia system is a century-old parallel banking system in India. in this, traders send cash from one state to another through a person called Angadia. Angadia stands for courier. In this system, huge cash is involved. It becomes the responsibility of Angadia to transfer cash from one state to another. For this purpose, Angadia charges a nominal fee.

Who are involved in this system?

This system is mostly used in jewellery business for which, Mumbai – Surat is the most popular route because they are two ends of the diamond trade. Usually, it is the Marwari, Gujarati, and Malbari community, that are involved in the business.

Working Mechanism

Angadia system works largely on trust as huge sums are involved. Usually, traders have the same Angadias for decades together. If a trader from one state wants to pay a trader from other state, he will send an Angadias to deliver money within 24 hours. They also have fixed trains. To verify authenticity, the trader gives some number to Angadia and provide the number to the recipient as well. After recipient confirms the number, Angadia hands over the money to him. After making the payment, the Angadias return to their place same day.

Legality of the system

Angadia system is legal. But it is suspected that, this system is used to transfer unaccounted money. Since the business deals are in cash and no account is maintained for the same. Thus, there have been suspicions that it is used to transfer black money like hawala transaction.