While making a cheque, you might have never thought that there are 5 parties associated with it, very few people know the names of all!

Many people use cheques, but very few people know how many parties are associated with the cheque. Generally, people think that it is a thing used only between the bank and the customer. However, this is not so. Up to 5 parties are associated with a bank cheque in different circumstances. Let us know about them.

A drawer is a person who makes a cheque and then signs it. That is, the drawer is the person who through the cheque orders a bank to pay the amount written on that cheque to a fixed account or a person.

In a cheque, the payee is the party for whom the cheque is written. That is, this is the person to whom you want to pay a fixed amount through the cheque.

Drawee here is the bank or financial institution to whom you order to pay a fixed amount.

The person in whose name the cheque is drawn, i.e. the payee, if he transfers it to the name of another person, then he is called the endorser. In this way, now the bank gets the order that the amount written on the cheque is given to the person to whom the cheque has been endorsed.

In a cheque, the endorsee is the person in whose name the cheque is transferred, i.e. endorsed. That is, the amount written on the cheque is given to this person.