Definition
A bank bill is a bill of exchange accepted by a bank. It represents an order in writing, addressed by one person to another and signed by the person giving it, requiring the person to whom it is addressed to pay, on demand or at a fixed date, a specified sum of money. The bill is made out by the signatory always with the consent of the person to whom it is addressed, who signs or accepts it, and mainly in relation to the sale of goods or produce. Eligible (bank) bills were commercial bills which met a number of criteria, relating to the purpose for which the bill is drawn, the clausing and maturity of the bill and the eligibility of the accepting bank.