BANKING AFFAIRS

Detailed explanation-1: -The next line on the check, “Pay to the order of, ” is where you write the name of the person or company you want to pay. You can also just write the word “cash” if you don’t know the person or organization’s exact name. Be aware, though, that this can be risky if the check ever gets lost or stolen.

Detailed explanation-2: -The person or entity writing the check is known as the payor or drawer, while the person to whom the check is written is the payee. The drawee, on the other hand, is the bank on which the check is drawn. Checks may be cashed or deposited.

Detailed explanation-3: -Payee: The person named in the cheque who is to receive the payment. Drawee: The specific bank on which the cheque has been drawn. Drawer: The person who writes the cheque, who can be the account holder or the customer. The payee and drawer can be the same person.

Detailed explanation-4: -Pay to order refers to negotiable checks or drafts paid through an endorsement that identifies a specific person or organization that the payer authorizes to receive money.