Answer: There are three parties to cheque, drawer, drawee, and payee.
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 actually 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.&
Who are the parties to cheque?
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 organisation 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.