Who are the Angadias | UPSC Exam Material

today we are going to discuss in brief

about the Angadia system this topic is

important from the perspective of

prelims and also from the perspective of

gs mains paper 3. let’s know all about

the system and before that i would like

to tell you about why we are discussing


so Mumbai police has registered cases


three policemen

from Mumbai police itself because they

were extorting and robbing the angadias

this was done so because of a complaint

that was filed by the angadia

association of bhuleshwar and they have

been registered under ipc


that is robbery


that is



that is wrongful

restraint and 34 that is common interest

so it has been registered against very


category of policemen and that is

against angaryas what are

where have they originated from we will

discuss all about that

so basically angadia word it means

courier okay for starters we can

understand it is a courier service it is

used for career service and it is a

hundred year old service or a parallel

banking system we can also say it moving

it is moving in india since the colonial

era it originated in the katyawad region

of gujarat


now we see that

important regions where businessmen

rich businessmen who trade in diamonds

there we can find the angadia

specifically in surat of gujarat

and the zaveri bazaar of mumbai so

specifically if we talk about diamond

merchandise and diamond business they

do have the system of angadias so this

is basically an unofficial banking and

career service a person

who is


the amount

from one place to another is known as an

angadia and they do have associations

as this system is going on since such a

long time they have their own system

like in history we study about the

guilds right guilds of parties and

similarly they have their own guilds and

they basically the people who are

included in the business are basically

from gujarati

or mulberry community okay moving on if

we talk about the procedures how do they


now traders can send cash

generally from one state to another with

the help of anguardias and this person

who is basically transferring the cash

in physical form is known as the angadia


jewelry business

is very prominent when it comes to

transferring of cash and basically you

have to understand not only cash

but they can also they might also be

carrying diamonds with them

and very importantly the route is fixed

they can have a fixed route

they have the entire system handy when

it comes to knowing about the timing of

the train when which train will pass

through which region so that they can

reserve their seats in the train or

through the roads they can reserve a


which is not very crowded which is not

very suspicious suspicious in the sense

they do want to save themselves from

robbery so in such cases they choose a

route which is much more safer and it is

generally known and they charge a

nominal fee for


sending the amount in bank system

banking system crores of and crores of

rupees if they go through the digital

banking system the formal banking system

it might appear it might be that the

charges of transferring the amount is

very high that is not the case with

anguardia’s and that is why it is much

more lucrative to the traders and we

have to understand that this system

cannot be banned in the sense that

if it is going once in such a long

period of time it needs to be regulated

right so keep all these things in mind

also they work through a particular

coding system they might use certain

words like joking


any word joking is a word mainly it can

be used for transfer of cash


zever can also be used for the jewelry

so they work on such codes which are

used in common parlance in their own

association of uh angadias but not known

to other people and it can happen that

suppose trader a and trader b

this person is in gujarat

and this person is in mumbai


a is sending two crore rupees to b

through an anguardia now the angarya

will be told will be given a 10 rupee



he will be or she will be given a 10

rupee note and the currency number on

this 10 rupee note will be told to

trader b

now when this angadia x


take the money to trader b


they both will match the currency number

which was told to be by trader a then

only the handing over of the money will

happen this is the generic system they

work upon and this is completely on


many traders have their own anguardia

since such a long period of time

and they completely do this business on

trust and they as i told you they have

fixed routes and trains sometimes they

can also reserve 30 to 50 percent of the

local trains if they are going from one

city to another city in one state or

from one state to another state they

might be doing so that they reserve the

seats that

are surrounding their seat and because

in order to save themselves from any

sort of suspicion of robbery they try to

stay awake at night as well and they

might also do something like they take

sleep by turns and now they are also

getting security guards which they

which are privately hired so this is the

level of

system they have evolved let’s move

forward and talk about

what is the trail with respect to the

hungarian system now now delivery of

cash and diamonds takes place on a daily

basis that means this system is very

prevalent in regions of gujarat and

mumbai about 70 percent seats and two

coaches of gujarat made are booked by

angadias as i told you now these guardia

agents prefer to travel in groups for

security surat sati alone has more than

16 guardia firms so surat ahmedabad and

mumbai zaveri bazar these are

of course dealing in merchandise of

diamonds so

these are the hot spots post lockdown

supply of diamonds and jewelry in mumbai

has reduced to 35 because what do they

do they carry the things in physical

sense so because of no contact and

because of lockdown also they have also

suffered a lot okay

let’s see this very important thing

about 90 percent of valuable goods from

surat was transported from surah to

mumbai through gujarat main after

lockdown its operation has remained

suspended this is a post sorry it’s a


image i have attached but just to make

you understand the gravity of the

situation that what amount of valuable


move within one

state one

city to another city this is the gravity

of the situation with respect to the

hungarian system and if we talk about

because this is an informal system

we are not resorting the traders are not

resorting to transfer of money through

the regular banking the formal banking

system risks are there but as i told you

they were completely on trust so formal


they includes banks and co-operatives

and if we talk about it is not exactly

related to hungarians but

i am talking about informal banking

system which consists of money lenders

traders employers and

friends and relatives


this point is not at all

relevant with respect to anguardia so we

will not read that

foreigners if we transfer um the amount

of money in kerose which is in corers


fee charged by the banks might be

exorbitant but if we talk about

the angadias it might not be as much as

the banking system former banking system

charges apart for from profit making the

regular banking system formal banking

system also works towards social welfare

which is not the case with angadia’s

okay so supervising body if we talk

about there is not any per se

supervisory body because


system is legal per se but they do not

have any supervising body like

governmental body like we have the rbi

or cb okay so that increases the risks

of any uncertainty that is happening in

happening in the anguardia system

first thing is hawala

the biggest issue

now these policemen

why did they extort or rob money from

the guardians because there is a

suspicion with respect to they might be

transferring the amount which is black

money that is why it is not going

through the formal banking system

so it’s okay to rob from a thief this is

this was their mindset so it has been

frowned upon actually that if money is

not going through the formal banking

system if it is being carried by the

young guardians it can be because that

money is not accounted for in the system

the governmental financial system then

this is black money the first thing is

that there is not any sort of concrete

regulation apart from their own guilds

they do not have

handbook to work by they do not have any

regulatory authority in case of

accountability has to be pinned as a

guardian system works on trust criminal

activities might also become very

rampant within the anguardia system it

might happen

that they might uh as i told you hawala

system can become very

handy with respect to to employing

angadias another thing because

the angadias they this profession goes

on for a long period of time and as i

told you they have fixed roots they have

fixed of

what you call it a system which is known

to their previous employers as well so

if any previous employer gets a hold of

any information or intelligence with

respect to one guardians working it

might happen that they can

victimize the young guardians by robbing

them similarly goes with the policeman

they might be aware in order to protect

them they might be aware that they are

going through this route but they did


exercise caution and they resorted to

robbing them okay let’s move forward and

talk about what can be done

in order to save such incidences

prohibiting such incidences from

happening saving angaryas first of all

the government should

try to keep a track

of angadia system

and mostly

the guardian system

if the angadia association of volatile

did lodge a complaint it was but evident

that they were doing their job

they actually have to do the job they

are not concerned if that is black money

or its white money they are doing their

job but through these incidents the

government might keep a track on

what is actually happening in the

country why the huge amount is being

bypassed so the government should come

out with a plan with respect to

making an effort so that the money gets

transferred between the traders at a

faster pace because hungarians they

transfer money maybe within 24 hours as



what happens that the money shouldn’t

get stuck so that their trading can go

on and

maybe for diamond merchants transfer

fees can also be reduced to a minimum so

that they do not have to resort to such

system but one thing keep in mind that

whenever we

ban suppose we are trying to make

the anguardias

subsidiary to the formal banking system

what about their profession their

profession they are getting unemployed

as well so checks and balances should be

there a regulatory body would do great

for hungarians although they are found

in a very localized spaces in gujarat

and mumbai

and maharashtra regions other regions as

well but an association our regulatory

body would do great in order to pin

accountability also

there should be system made

by the guilds themselves for better


right so that would help a lot let’s

move on and talk about our means


what is the hungarian system discuss the

benefits and the issues related to this

system in 150 words ?

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