BANKING AFFAIRS

Detailed explanation-1: -There are three parties involved in the processing of a cheque: the drawer, who issues the cheque and holds the bank account; the drawee, which is the financial institution; and the payee, who is the person whose name appears on the cheque and will receive the funds.

Detailed explanation-2: -The maker of a bill of exchange or cheque is called the “drawer"; the person thereby directed to pay is called the “drawee".

Detailed explanation-3: -A drawee refers to the person or organization that accepts and pays a certain sum of money to a payee. The drawee typically acts as a go-between, redirecting funds from the payer’s account to the payee’s account. The drawee is usually a bank but check-cashing companies and even retail stores can also act as drawees.

Detailed explanation-4: -A bank is the issuer of these types of cheques. The bank issues these cheques on behalf of an account holder to make a remittance to another person in the same city. Here the specified amount is debited from the account of the customer, and then, the cheque is issued by the bank.

Detailed explanation-5: -Drawee-this is the banker of the drawer. Payee-is the person who gets the check payment. The account holder has a check book from their bank and therefore writes (draws) a check to the bank (bank of drawee) to facilitate the payment.