BANKING AFFAIRS

Detailed explanation-1: -The maker of a cheque is called the ‘drawer’, and the person directed to pay is the ‘drawee’. 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: -Generally, the payee is the person to whom you make the payment, regardless of whether that person is the beneficial owner of the income. However, there are situations in which the payee is a person other than the one to whom you actually make a payment.

Detailed explanation-3: -Anyone who is paid is a payee, but the term is most commonly used to mean the person (or organization) whose name is written on a check after the words “pay to the order of.” If you write a check to pay your cable bill, the cable company is the payee.

Detailed explanation-4: -7. The maker of a bill of exchange or cheque is called the “drawer; ” the person thereby directed to pay is called the “drawee.” When in the bill or in any indorsement thereon the name of any person is given in additional to the drawee to be resorted to in case of need, such person is called a “drawee in case of need.”

Detailed explanation-5: -Drawee is the party that has been ordered by the drawer to pay a certain sum of money to the person presenting the check (the payee). Usually, the drawee is the bank.