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The DRAWER is the individual who issues the cheque, instructing the bank (DRAWEE) to pay the recipient (PAYEE).
Drawer and payee can be the same person if it is a self cheque.
Wiki User
∙ 9y ago
Wiki User
∙ 14y agoDrawer means who issued the cheques....
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What is a banker's draught?
A banker's draught is a cheque whose drawer is also its drawee.
What is a banker's draft?
A banker's draft is a cheque whose drawer is also its drawee.
Name the parties to a cheque?
drawer- the person who writes and sings the cheque . drawee- the bank on which the cheque is drawn . payee- the person named on the cheque .
What is security cheque?
The cheque issued to drawee as security or surety, for using in case the drawer fails to meet the future obligations arising during course of business transactions. Such cheque is usually but not necessary; post dated cheque, blank as to date, blank as to amount, rarely blank as to drawee, but never blank as to signature.
What are the examples where drawer and drawee are the same?
There really isnÕt a big difference between a drawer and drawee. A drawer is a person that draws out the money and a drawee is the person who will be receiving the money.
Meaning of paying banker?
the banker on whom a cheque is drawn or the banker who is required to pay the cheque drawn on him by a customer is called the paying banker or drawee bank
State the similarities between a cheque and bill of exchange?
Both of them are forms of payment. Both promise the receiver that they will receive money. There are three parties in both, the payee, the drawer, and the drawee.
What is the meaning of truncated cheques?
The process in which cheque details are captured by the payee bank (or its clearingagent) and electronically presented in an agreed format to the drawee bank (the bank on which it was drawn) for payment. Unlike the more common form of presentment where a cheque is physically presented to the drawee bank, a truncated cheque is stored by the payee bank.
What is a collection only cheque?
A cheque which will be paid only by the drawee bank; on collection basis;
Can Demand Draft be dishonoured?
A Demand Draft is a cheque that contains an order of one branch of a bank ( Drawer branch ) directing another branch of the same bank ( Drawee branch ) to pay on demand a certain sum of money to a specified beneficiary ( Payee ) . It is an Account payee instrument, meaning it can only be credited to the account of the payee and cannot be encashed over the counter by the payee.A Demand Draft is a much safer and certain method of payment than cheques, since in the case of cheques, an individual is the drawer and hence the cheque can be dishonoured by the drawee bank due to insufficiency of funds in the drawer's account. But since in the case of a DD, the drawer is a bank, payment is certain and it cannot be dishonoured.
Difference between cheque and dd?
The following are the main differences between a cheque and a demand draft: 1. A cheque is issued by an individual, whereas a demand draft is issued by a bank. 2. A cheque is drawn by an account holder of a bank, whereas a draft is drawn by one branch of a bank on another branch of the same bank. 3. In a cheque, the drawer and the drawee are different persons. But in a draft both the drawer and the drawee are the same bank. 4. A Cheque can be dishonored for want of sufficient balance in the account. Whereas a draft cannot be dishonoured. Hence there is certainty of the payment in the case of a demand draft. 5. Payment of a cheque can be stopped by the drawer of the cheque, whereas, the payment of a draft cannot be stopped. 6. A cheque is defined in the Negotiable Instrument Act, 1881, whereas a demand draft has not be precisely defined in the NI Act. 7. A cheque can be made payable either to a bearer or order. But a demand draft is always payable to order of a certain person. M.J. SUBRAMANYAM, BANGALORE
What is the difference between demand draft and cheque?
The following are the main differences between a cheque and a demand draft: 1. A cheque is issued by an individual, whereas a demand draft is issued by a bank. 2. A cheque is drawn by an account holder of a bank, whereas a draft is drawn by one branch of a bank on another branch of the same bank. 3. In a cheque, the drawer and the drawee are different persons. But in a draft both the drawer and the drawee are the same bank. 4. A Cheque can be dishonored for want of sufficient balance in the account. Whereas a draft cannot be dishonored. Hence there is certainty of the payment in the case of a demand draft. 5. Payment of a cheque can be stopped by the drawer of the cheque, whereas, the payment of a draft cannot be stopped. 6. A cheque is defined in the Negotiable Instrument Act, 1881, whereas a demand draft has not be precisely defined in the NI Act. 7. A cheque can be made payable either to a bearer or order. But a demand draft is always payable to order of a certain person.
