| Bill of Exchange | Hundi |
| 1. Bill of Exchange is governed by Indian Negotiable Instrument Act, 1881. | 1. Hundi is not governed by any Act i.e., the government has no control and interference over it. |
| 2. Bill of Exchange is generally written in the English Language. | 2. Hundi is written in Hindi or may be written in any regional language. |
| 3. Bill of Exchange is always unconditional. | 3. Bill of Exchange is always unconditional. |
| 4. Acceptance is required in case of a Bill of Exchange. | 4. Acceptance is not required in case of a Hundi. |
| 5. Bill of Exchange is universally accepted i.e., it can be used all over the world. | 5. The use of Hundi in limited within India. |
