Bill of Exchange

A Bill of Exchange is a written, unconditional order issued by one party (the drawer) directing another party (the drawee) to pay a specified sum of money to a named payee either on demand or on a fixed future date. Widely used in trade finance and international commerce, it serves as a negotiable instrument and a short-term credit tool. In India, Bills of Exchange are governed by the Negotiable Instruments Act, 1881. For investors and businesses, bills of exchange facilitate working capital management and provide a legally enforceable framework for deferred payment transactions.