DIFFERENCES BETWEEN THE BILL OF EXCHANGE AND THE CHEQUE

by • 17/06/2011 • 2nd year BankingComments (0)558

BILL OF EXCHANGE

CHEQUE

1.It can be drawn on an individual, institution, or banker

It is drawn on a banker only.

2.It must be accepted by the drawee.

It requires no acceptance.

3.It is payable on demand or after a specified period.

It is always payable on demand.

4.Three days of grace are allowed.

No grace days can be allowed.

5.It cannot be crossed.

It can be crossed

6.In case of dishonor, a notice must be given.

No notice is required even if it is dishonored.

7.Revenue stamp according to the value must be affixed.

No revenue stamp is needed.

8.Payment cannot be stopped.

Payment can be stopped.

9.Dishonor requires noting and protesting.

Noting and protesting are not required in the case of dishonor.

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