Question: What Is Drawer In Banking?

Who is a drawer drawee and payee?

The drawee is the party that pays the sum specified by the bill of exchange.

The payee is the one who receives that sum.

The drawer is the party that obliges the drawee to pay the payee.

The drawer and the payee are the same entity unless the drawer transfers the bill of exchange to a third-party payee..

What is relationship between drawer and drawee?

The maker of a bill of exchange or cheque is called the “drawer”; the person thereby directed to pay is called the “drawee”.

Can drawer and payee be the same person?

Drawer and payee is the same person in this case. Bill of exchange payable to drawer’s order is a bill of exchange where the drawer orders to himself to pay to a payee. Drawer and drawee is the same person here. To get a direct debtor, the bill of exchange has to bear an acceptation by the drawee.

What is another word for drawer?

n. bureau, chest of drawers, chiffonier, buffet, desk, chest, counter, sideboard, commode, dresser.

Is it draw or drawer?

Draw has many uses as a verb (e.g. to create a picture, move, or pull something) and as a noun (e.g. a lottery, a tie, or an attraction). Drawer is always a noun that refers to furniture or underpants.

What is the difference between payer and payee?

Understanding Payee In the case of a promissory note, through which one party promises to pay another party a predetermined sum, the party receiving the payment is known as the payee. The party making the payment is known as the payer.

Who is payee in Cheque?

A payee is the person to whom a check, promissory note, draft or bill is written out. A payee may also be the one who holds the coupons of a bond. An example of a payee in a check is one whose name appears in the caption “Pay to the Order of” on most checks.

How do you describe a drawer?

noun. a sliding, lidless, horizontal compartment, as in a piece of furniture, that may be drawn out in order to gain access to it. drawers, (used with a plural verb) an undergarment, with legs, that covers the lower part of the body. a person or thing that draws.

What is drawer and drawee and payee in bill of exchange?

the drawer is the party that issues a bill of exchange – the ‘creditor’; 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’.

What is Bill of Exchange and its essentials?

According to the Indian Negotiable Instruments Act of 1881, under section 5, “A Bill of Exchange is an instrument in writing containing an unconditional order, signed by the maker, directing a certain person to pay a certain sum of money only to, or to the order of, a certain person or to the bearer of the instrument.”

What is the meaning of drawer in banking?

The bank that cashes your check is the drawee, your employer who wrote the check is the drawer, and you are the payee.

What is the meaning of drawer?

one that draws1 : one that draws: such as. a : a person who causes liquor to come out of a container : one who draws (see draw entry 1 sense 1b) liquor. b : draftsman. c : one that draws (see draw entry 1 sense transitive 7) a bill of exchange or order for payment or makes a promissory note.

What are the duties of the drawer of the check?

Check: A (special kind of) draft drawn by a depositor (the drawer) ordering a bank or other financial institution (the drawee) to pay a sum certain of money on demand to, or to the order of, a third person (the payee). The drawer is liable for ensuring that sufficient funds are in his or her account to cover the check.

Who is called drawer?

Drawer: the person or entity whose transaction account is to be drawn. Usually, the drawer’s name and account is preprinted on the cheque, and the drawer is usually the signatory. Payee: the person or entity who is to be paid the amount.

What is drawee branch in demand draft?

A demand draft is a negotiable instrument similar to a bill of exchange. A bank issues a demand draft to a client (drawer), directing another bank (drawee) or one of its own branches to pay a certain sum to the specified party (payee). A demand draft can also be compared to a cheque.