Parties to Cheque
There are three main parties involved in a bank cheque transaction:
1. Drawer
The drawer is the person who writes and signs the cheque, issuing the payment instruction. The drawer is typically the account holder who authorizes the payment from their bank account.
2. Payee
The payee is the person or organization named on the cheque to receive the payment. The payee is the intended recipient of the funds specified by the drawer.
3. Drawee
The drawee is the bank or financial institution on which the bank cheque is drawn. The drawee is responsible for paying the payee as instructed by the drawer.
These parties collectively form the foundation of a cheque transaction. The drawer initiates the payment, the drawee holds the funds, and the payee receives the payment.
What is a Cheque – Types, Features, Chequebook, Advantages
Cheques, cheques, what’s the big deal, right? They’re those little pieces of paper people deposit, and transactions happen. Simple, right? Well, cheques are more than just a mundane financial instrument; they’re a testament to the evolution of humanity itself. You see, my curious friend, the history of cheques dates back to the 13th century, and it’s a story that has shaped your very existence.
So, picture this: someone randomly asks you, “What is a cheque?”. But you don’t know the answer. So, you find yourself stammering and lost for words. It’s not just your reputation at stake; it’s the struggles of all humankind! But worry not. We’re here to rescue you from the embarrassment. Stay tuned till the end to know all about cheques.