![]() ![]() His name will be mentioned on cheque, so he is an authorized person to receive cash. ![]() If payment not done, then it is called “cheque dishonored”.ģ) Payee-He is a person to whom the payment will be made. When your bank follows the instruction and pay the cash to the person whose name mentioned on cheque or to the bearer of cheque then it is called as “cheque is honored”. So drawer is giving instruction to drawee to pay an amount mentioned on the checque to the person named or to the bearer of the checque. Therefore, in simple words, you may say that a person who holds the bank account and who sign on cheque is called the drawer.Ģ) Drawee-Drawee is a party upon whom the cheque is written. He is directing banks to pay a certain amount of money to the certain person or to the bearer of the cheque. Therefore, he issues cheques of his bank account. 1) Drawer-He is a person who holds the account and has written and signing authority on cheque.
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