A presentation on bills of exchange

1. BILLS OF EXCHANGE
SUBMITTED TO - Dr. Shikha Gupta, Faculty, MERI
SUBMITTED BY – Tanvi Naryal, BBA, sem.3, sec.B,04615101721

2. BILLS OF EXCHANGE
As per the Indian negotiable instruments act, 1881.
A “bill of exchange” is an instrument in writing containing an unconditional order, signed by
the maker, directing a certain person to pay a certain sum of money only to, or to the order of,
a certain person or to the bearer of the instrument

3. CHARACTERISTICS OF BILL
OF EXCHANGE
• It must be a written document.
• It must name all relevant parties.
• It must be addressed from one party to another.
• It must bear the signature of the party giving it.
• It must outline the time when the money is due.
• It must outline the amount of money that must be paid.

4. PARTIES TO A BILL OF
EXCHANGE
In any bill of exchange, a maximum of three parties can participate. They are:
• Drawer: It is the party who sells the goods, issues the bill of exchange, and is yet to receive
the money from the debtor.
• Drawee: It is the party who purchases the goods on credit and to whom the bill of exchange
is issued. Basically, drawee is the debtor and the drawer is the creditor.
• Payee: It is the party that finally receives the payment on the due date. If there is no transfer
of the bill of exchange, then the drawer and the payee is the same.

5. PARTS OF A BILL OF
EXCHANGE
• AMOUNT
• DATE
• PERIOD
• SIGNATURE
• STAMP

6. TYPES OF BILLS OF EXCHANGE
There are mainly two types of Bills of Exchange:
• Bills of Exchange Payable at Sight – They are payable on demand. When the Bill is given
to the drawee, he or she must pay the amount.
• Bills of Exchange After a Certain Period– This is also called term draft and becomes
payable after a certain time period.

7. THANK YOU