What are the difference between cheque and bill of exchange?

A cheque differs from a bill of exchange in the following respects:

Drawee:

A cheque is always drawn on a bank or banker while a bill of exchange can be drawn on any person including a banker.

Acceptance:

A cheque does not require any acceptance, while a bill must be accepted before the drawee can be made liable upon it.

Payment:

A cheque is payable immediately on demand without any days of grace, but a bill of exchange is normally entitled to three days of grace unless it is payable on demand.

Stamp:

A bill of exchange must be stamped, whereas a cheque does not require any stamp.

Protection:

A banker is given statutory protection with regard to payment of cheques in certain circumstances. No such protection is available to the drawee or acceptor of a bill of exchange.