BANKING AFFAIRS

Detailed explanation-1: -The person named in the instrument, to whom or to whose order the money is by the instrument directed to be paid, is called the “payee".

Detailed explanation-2: -According to section 4 of India’s Negotiable Instruments Act, 1881, “a Promissory Note is a writing (not being a bank note or currency note), containing an unconditional undertaking, signed by the maker to pay a certain sum of money only to or to the order of a certain person or the bearer of the instrument".

Detailed explanation-3: -The person to whom the amount of cheque is payable or paid is called payee.

Detailed explanation-4: -Payee: Payee is the person whose name is written on the promissory note or bill of exchange or cheque. The payee is entitled to receive amount mentioned in the note or bill or cheque. Holder: Holder is either the payee or some other person to whom he may have endorsed the promissory note or bill of exchange or cheque.

Detailed explanation-5: -the beneficiary or payee is the party to which the bill of exchange is payable; the drawee is the party to which the order to pay is sent-‘the debtor’. The drawee becomes the acceptor when he/she/it has written the acceptance on the bill of exchange.