Question

What is meant by maturity of a bill of exchange?

Answer 1

The date calculated after adding 3 days of grace to the due date of a bill is called the date of maturity of a bill.

It is to be noted that when a bill is to be payable on demand/at sight, then days of grace is not applicable.

When the period of a bill is mentioned in days, the maturity of bill is calculated in days.

Similarly, when the period of a bill is mentioned in months, the maturity of bill is calculated in months.

In certain cases, when the maturity date of any bill falls on a public holiday, then the maturity date of the bill will be the previous business day.