Angadia

The Angadia system is a centuries-old parallel banking system primarily used in India, involving the transfer of money, valuables, and documents from one location to another. It operates outside of traditional banking channels and relies heavily on trust and a well-established network of messengers (called Angadias) who physically transport the items.

Angadias are typically part of a community or have built a strong reputation for reliability and trustworthiness within specific business circles, particularly in the diamond, textile, and jewelry industries. The system facilitates quick and secure transfers, often within a day or two, between cities, making it a popular choice for businesses requiring rapid movement of funds.

The Angadia system functions on a commission basis; Angadias charge a small percentage of the amount being transferred as their fee. The exact percentage varies depending on the distance, value, and risk associated with the transfer. The process typically involves the sender handing over the money or valuables to an Angadia at the origin location, who then provides a token or code. A corresponding Angadia at the destination location, upon verification of the token with the intended recipient, delivers the items.

While generally legal, the Angadia system has been scrutinized and is susceptible to misuse for illicit activities, such as money laundering and tax evasion, due to its informal nature and lack of rigorous regulatory oversight compared to formal banking institutions. Law enforcement agencies often monitor Angadia operations to prevent the flow of illegal funds. Efforts are underway to integrate aspects of Angadia services with more formal banking systems to improve transparency and accountability.