Who is drawee in the bank cheques

Create a personalised ads profile. Select personalised ads. Apply market research to generate audience insights. Measure content performance. Develop and improve products. List of Partners vendors. Drawee is a legal and banking term used to describe the party that has been directed by the depositor to pay a certain sum of money to the person presenting the check or draft.

A typical example is if you are cashing a paycheck. The bank that cashes your check is the drawee, your employer who wrote the check is the drawer, and you are the payee. The drawee most often performs the function of an intermediary for a financial transaction.

Its purpose is to redirect funds from the payer, or drawer, account to present the funds to the payee. Often, the position of drawee is held by a financial institution that holds the payer funds within a deposit account under its management. Check-cashing services perform the duties of a drawee but often require a small fee to complete the transaction.

Additionally, money order and wire transfer companies that exist outside of the traditional banking format also qualify. The money order functions as the bill of exchange that when provided to the payee is honored by the company that received the funds from the payer.

Banks often act as the drawee in financial transactions, but check cashing businesses and even retail companies may also serve as a drawee, depending on the situation. There are instances outside of financial institutions where a party may be considered a drawee, if only in an informal sense.

The customer has presented a document, created by a company, functioning as the drawer or payer of the debt, that entitles him to a certain amount of money in return for buying the product, causing the customer to perform the role of payee. While most of these transactions do not require actual money to be handed to the customer, because the money is funded as a discount on the total, it can result in an actual payment depending on various regulations governing the activity.

If the drawee is a bank, the acceptance is called a banker's acceptance. The party upon whom the bill is drawn is called the drawee. A sahyog hundi passes from one hand to another till it reaches the final recipient, who, after reasonable enquiries, presents it to the drawee for acceptance of the payment.

A drawee is answerable to the drawer. These examples are from corpora and from sources on the web. Any opinions in the examples do not represent the opinion of the Cambridge Dictionary editors or of Cambridge University Press or its licensors. What is the pronunciation of drawee? Test your vocabulary with our fun image quizzes. Image credits. Word of the Day goodwill. Blog Outsets and onsets! Read More.

November 08, To top. He gives the order to pay money to the third party. The party upon whom the bill is drawn is called the drawee. Drawer or Drawers may refer to: Drawer furniture Someone who engages in drawing. Payor, a person who draws a bill of exchange. Bearer cheque can be transferred by mere delivery; they need no endorsement. In simple words a cheque which is payable to any person who presents it for payment at the bank counter is called ' Bearer cheque '.

The payee can transfer an order cheque to someone else by signing his or her name on the back of it. A payee is a party in an exchange who receives payment.

The payee is paid by cash, check, or another transfer medium by a payer. The payer receives goods or services in return. Basically, there are three parties to a cheque: Drawer: The person who draws the cheque, i. Drawee: The bank on which the cheque is drawn or who is directed to pay the specified sum written on the cheque.

Payee: The beneficiary, i. Drawer Attention Required which expression connotes non-availability of funds in the customer's account which will equally be wrongful and defamatory to return a cheque so marked if the customer has adequate funds in the account. The payer sometimes spelled payor is the person who pays the payment money usually but could be any form of 'consideration'.

The payee is the person to whom the payment is made in other words, the person who receives the payment. A cheque number is often required by us to track the cheque status. The cheque number is a unique number that helps to identify a cheque.

The following point will help you understand the cheque format. The six-digit number written at the bottom left-hand corner of the cheque is the cheque number. A cheque is a negotiable instrument. It can either be open or crossed. An open cheque is the bearer cheque.

The amount payable for the crossed cheque is transferred to the bank account of the payee. When the word "or bearer" printed on the cheque is cancelled, the cheque is called an order cheque.

An order cheque is one which is payable to a particular person.