answersLogoWhite

0

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.

User Avatar

Wiki User

12y ago

What else can I help you with?

Related Questions

Meaning of drawer and drawee of cheque?

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.


What is the difference between drawer and drawee?

The drawer is the individual or entity that creates and signs a financial instrument, such as a check or draft, instructing the drawee to pay a specified amount to a designated payee. The drawee, on the other hand, is the bank or financial institution that is responsible for honoring the payment request made by the drawer. Essentially, the drawer initiates the transaction while the drawee fulfills it.


Whats is money order issuer or drawer?

The issuer of the order is the drawer, while the drawee is the person whom the drawer "pays to the order of" (Order receiver).


What is a banker's draft?

A banker's draft is a cheque whose drawer is also its drawee.


What is a banker's draught?

A banker's draught is a cheque whose drawer is also its drawee.


What is difference between drawee and drawer?

Drawer is the authorized person to make the note, check, bills of exchange etc. He is also known as maker of instrument(note,boe,check). Drawee is the person who makes the payment for the bill or instrument written.


Meaning of fictitious bill?

A bill in which the drawer or the payee or both are non existent. In such case the drawee or the acceptor is liable to pay the due amount to the holder in due course. The onus to prove that the drawer is fake lies on the endorsee. He can prove it by proving that the signature of drawer and first endorser are the same.


What is the difference between a drawer payee and a drawee of a cheque?

In a cheque transaction, the drawer is the person or entity that writes and signs the cheque, instructing the bank to pay a specified amount to the payee. The payee is the individual or entity to whom the cheque is made out and who is entitled to receive the payment. The drawee, on the other hand, is the bank or financial institution where the drawer holds an account and is responsible for honoring the cheque by releasing the funds to the payee upon presentation. In summary, the drawer creates the cheque, the payee receives the payment, and the drawee facilitates the transaction by processing the cheque.


What are the 3 parties of cheque?

The three parties involved in a cheque are the drawer, the payee, and the drawee. The drawer is the person or entity that writes and signs the cheque, authorizing the payment. The payee is the individual or organization to whom the cheque is payable and who will receive the funds. The drawee is the bank or financial institution that holds the drawer's account and is responsible for paying the amount specified on the cheque to the payee.


How BILL OF EXCHANGE Works?

A bill of exchange is a financial instrument that involves three parties: the drawer (who creates the bill), the drawee (who is ordered to pay), and the payee (the recipient of the payment). The drawer instructs the drawee to pay a specified sum of money to the payee at a predetermined future date. Once accepted by the drawee, the bill becomes a legally binding obligation. It can be transferred to another party, allowing for flexibility in financial transactions.


Can a drawee to a bill of exchange be the payee?

No,drawee is the person upon whom the bill the exchange is drawn. in general debtor is the drawee.drawer is the peson who sold the goods on credit. drawer make the bill of exchange upon the debtor.payee is the peson to whom the drawee make the payment according to the condition mention in the bill.drawer and payee may be the same person or different if the has been endorse to the creditor or discounted from the bank.___________________________________________________________________BILLS OF EXCHANGE IS AN INSTRUMENT IN WRITING,CONTAINING AN UNCODITIONAL ORDER,SIGN BY THE MAKER/DRAWER,DIRECTIONG A PERSON TO PAY A CERTAIN AMOUNT OF MONEY ONLY TO , OR TO THE ORDER OF A CERTAIN PERSON OR THE BEARER OF THE INSTRUMENT.IT IS GENERALLY DRAWN UPON A DEBTOR BY THE CREDITOR.THE DEBTOR HAS TO PAY THYE MONEY AFTER A FIXED DURATION OF TIME ONLY WHICH IS KNOWN AS MATURITY OF BILL.THREE PARTIES ARE INVOLVE IN THISONE IS THE DRAWER OR THE MAKER/SELLER OF THE BILL OF EXCHANGE WHO DRAW THE BILO UPON HIS DEBTOR.SECOND IS THE DRAWEE OR DEBTOR/PURCHASER UPON WHOM THE BILL OF EXCHANGE IS DRAWN.THIRD THE PAYEE THE PERSON TO WHOM THE PAYMENT HAS TO BE MADE.IF THE DRAWER KEEP THE BILL TILL THE MATURITY AND RECEIVE THE PAYMENT FROM THE DRAWEE HE HIMSELF IS THE PAYEE.PAYEE AND DRAWER ARE DIFFERENT IF1 THE DRAWER DISCOUNT THE BILL FROM HIS BANK(MEANS THAT IF THE BELL HAS BEEN DRAWN FOR THREE MONTHS AND THE DRAWER NEED THE MONEY IN BETWEEN HE MAY ENCASH THE BILL FROM THE BANK. BANK AFTER DEDUCTING SOME INTEREST GIVE THE REMAING AMOUNT TO THE DRAWER) OR2 DRAWER TRANSFER THE BILL TO HIS CREDITOR WHICH IS KNOWN AS ENDORSMENT OF BILL.IN CASE OF ANY OR BOTH OF THE ABOVE CONDITION THE PAYEE AND THE DRAWER ARE DIFFERNT EITHER THE BANK OR CREDITOR TO WHOM THE DRAWEE HAS TO MAKE THE PAYEMENT


How many parties are involved in bill of exchange?

A bill of exchange typically involves three parties: the drawer, who issues the bill; the drawee, who is ordered to pay the amount specified in the bill; and the payee, who receives the payment. The drawer creates the bill, the drawee accepts it, and the payee benefits from the payment. These roles can sometimes overlap, but they are distinct in their functions within the transaction.