Bills Explained: Commercial, Treasury, and More
Commercial Bills
These are short-term, negotiable, and self-liquidating instruments with low risk, governed by the Indian Negotiable Instruments Act of 1881.
- Bill of Exchange: A written, unconditional order signed by the maker, directing payment of a certain sum to a specific person.
- Trade Bill: Another name for a bill of exchange.
- Commercial Bill (Bank-accepted): A trade bill accepted by a commercial bank.
- Period of Bills: Typically 30, 60, or 90 days.
- Demand Bill: Payable immediately upon demand or presentation.
- Usance Bill: Payable after a specified time.
- Clean Bill: Documents are enclosed and delivered upon acceptance by the drawee.
- Documentary Bill: Documents are delivered against payment accepted by the drawee, held by bankers until payment.
- Inland Bills: Drawn and payable within India.
- Foreign Bills: Drawn outside India, potentially payable by a party outside India.
- Hundi: An important financial instrument in India.
- Derivative Usance Promissory Notes: Introduced by the RBI to simplify bill rediscounting.
Treasury Bill (T-Bill)
A short-term U.S. government debt obligation with a maturity of less than one year, sold in denominations of $1,000 up to $5 million, commonly with 1-month, 3-month, or 6-month maturities. Commercial bills often have higher yields than T-bills due to varying credit quality.
Types of Bills
Public Bills: Address matters of national interest.
- Government Bills: Public bills initiated by a Minister.
- Private Members’ Bills: Public bills initiated by non-Cabinet Members (excluding financial provisions).
Private Bills: Grant powers, rights, or exemptions to specific individuals or corporations.
Healthcare Bills
- Inpatient Bill: Covers hospital room, food, supplies, services, tests, and procedures.
- Outpatient Bill: Covers facility use, tests, and procedures in a clinic or outpatient setting.
- Home Care Bill: Covers services and products provided at home, such as nurse visits.
- Physician Bill: Covers physician fees.
Household Bills
- Council Tax: A tax based on your residence’s value and occupancy.
- Heating Bills: May require a security deposit.
- Water Rates: May be included in rent for private flats.
- Telephone Bill: A common expense in shared housing.
- Direct Debits: Automate bill payments.
- Old Tenants’ Debts: Not your responsibility; contact the utility company if you experience connection issues.