Difference between Cheque and Bill of Exchange

DIFFERENCE B /W CHEQUE AND BILL OF EXCHANGE

BILL OF EXCHANGE

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

2. It must be accepted by the drawee..

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

4. Three days of grace are allowed. .

5. It cannot be crossed.

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

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

8. Payment cannot be stopped

9. Dishonor requires noting and protesting.




CHEQUE

1. It is drawn on a banker only.
2. It requires no acceptance
3. It is always payable on demand
4. No grace days can be allowed
5. It can be crossed.
6. No notice is required even it is dishonored.
7. No revenue stamp is needed.
8. Payment can be stopped.
9. Noting and protesting are not required in the case of dishonor