Who are the Parties to Cheque?

By K Balaji|Updated : December 1st, 2022

There are three parties to the cheque: drawer, drawee, and payee. These three parties are involved in a cheque transaction. In such transactions, the drawer is the organization or person that issues the cheque, the drawee is the financial institution, and the payee is the organization or person that receives the cheque.

Parties to a Cheque

There are three parties involved in a cheque. They are drawer, drawee, and payee. The drawer is the account holder from where the cash is to be transferred. Drawee, in this process, is the bank that will carry out this process, and the payee is the party who will receive the payment. In such transactions drawer is the maker of the cheque. Drawee is the party upon whom the cheque is drawn, and the payee is the party in favor of whom the cheque is issued.

It is important to understand the role of all three parties to understand the process of cheque transactions.

  • A cheque is a negotiable instrument that can direct a bank to transfer the mentioned money from one account to another.
  • This can be a transaction from one bank to another bank.
  • Generally, in normal cheque processing, three parties are involved.
  • All three parties play an equal role in such transactions.
  • The presence of each party is equally important to complete the cheque-based transactions.

Summary:

Who are the Parties to a Cheque?

There are three parties to the cheque, which are the drawer, drawee and payee. These three parties are involved in a cheque transaction. In such transactions, the drawer is the organization or person that issues the cheque, the drawee, in such cases, is the financial institution, and the payee is the organization or person that receives the cheque.

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