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what is meant by retiring an bill under rebate?

retiring an bill under rebate means the renewal the bill with the discount.
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When the bill is paid back or covered by the drawee before the due date, the drawer gives a discount called retire as to encourage this action.
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When the drawee makes the payment of the bill before its due date,it is called retiring the bill. In such a case,the holder of the bill usually allows him discount, technically called 'REBATE'. Such rebate is calculated at a specified rate per annum for the period the payment is being made too early. The rebate is a gain to the party making the payment and an expense to the party receiving the payment.
  
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