The person who signs a check to his or her bank ordering the latter to pay the face amount of the check to the payee. Related Terms: Check or Cheque, Drawee. In form, a check is an order to the drawee bank to pay the face amount of the check to the payee. Drawee is a legal and banking term used to describe the party that has been directed by the depositor to pay a certain sum of money to the person presenting the check or draft. Define drawee. drawee synonyms, drawee pronunciation, drawee translation, English dictionary definition of drawee. (Banking & Finance) the person or organization on which a cheque or other order for payment is drawn.
The drawer’s bank is known as the paying bank, and the entire process is known as ‘collecting the cheque’. A collecting bank will ordinarily be collecting thousands of cheques a day, and the paying bank will be collecting cheques drawn on the collecting bank. Checks A check is a written order made by a drawer to her or his bank to pay a designated person or organization (the payee) the amount specified on the check. Can the collecting bank be charged to pay interest over the amount of the cheque sent for collection and fails to collect theamount and the cheque in the mean time becomes stale. Cheque in its printed form comes in the following manner: Pay. This cheque is payable by the drawee bank over the counter to the Bearer or presenter of the cheque.
1) Drawer-He is a person who holds the account and has written and signing authority on cheque. Therefore, he issues cheques of his bank account. Before the bank makes payment on the cheque, it ensures itself that the cheque is in order. The bank must verify the signature of the drawer. In the case of bank drafts and of bank cheques, it is the payee who bears the risk of loss through cheque forgery or when cheques are tampered with. A bank cheque is also a demand note, by which the drawer orders the drawee bank to pay a certain sum to a payee.
Paying And Collecting A Cheque
A check that certifies that the signature of the drawer is genuine and that the depositor has sufficient funds on deposit for its payment. The person writing the cheque, the drawer, has a transaction banking account (often called a current, cheque, chequing or checking account) where their money is held. In India, 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 ). When a cheque is drawn on your bank and deposited at the payee’s bank, your bank pays the proceeds of the cheque to the payee’s bank on the day the cheque is cleared and your account is debited on the same day. You should ask for a new CTS-compliant cheque from the drawer.