Also in case of dishonor of cheque (in the above example), Mr.Rohan can sue Mr.Satish and in return Mr.Satish to me and finally I can sue to the drawer of cheque. The payee can further endorse or cash it according to his wish. So by mere crossing you are no longer making payment to PAYEE ONLY. Further Mr.Satish either can encash this cheque or he can endorse to someone, for example to Mr.Rohan by writing and signing on back of cheque leaf. Satish by writing and signing on back of cheque leaf. Instead of cashing it to my bank account I can further endorse the cheque to anyone, for example to Mr. For example, in the above example payee name is mine. However, do remember that in crossed cheque payee is free to make a further endorsement. Once you cross the cheque and mention the payee name (in above example, it is my name) then I can only encash this cheque by depositing to my Bank Account.
#HANDOVER REMAINING CHEQUEBOOK HOW TO#
In such case drawer himself becomes payee.įrom above image, you notice how to change the normal cheque leaf into crossed cheque. So if drawer himself need to withdraw cash from his account using cheque then he need to write as SELF in the payable field of the cheque. His name will be mentioned on cheque, so he is an authorized person to receive cash. If payment not done, then it is called “cheque dishonored”.ģ) Payee-He is a person to whom the payment will be made. When your bank follows the instruction and pay the cash to the person whose name mentioned on cheque or to the bearer of cheque then it is called as “cheque is honored”. So drawer is giving instruction to drawee to pay an amount mentioned on the checque to the person named or to the bearer of the checque. Therefore, in simple words, you may say that a person who holds the bank account and who sign on cheque is called the drawer.Ģ) Drawee-Drawee is a party upon whom the cheque is written. He is directing banks to pay a certain amount of money to the certain person or to the bearer of the cheque. Therefore, he issues cheques of his bank account. 1) Drawer-He is a person who holds the account and has written and signing authority on cheque.
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