As
per section 6 of Negotiable Instruments Act 1881, “A Cheque is a bill of
exchange drawn on a specified banker and not expressed to be payable otherwise
than on demand”. Thus it is an instrument in writing containing an
unconditional order signed by the writer / maker directing a specified banker
to pay on demand, a certain sum of money, or to the particular person or to the bearer of the
instrument.
As
per Wikipedia, A Cheque (or Check in
American English) is a document/instrument (usually a piece of paper) that
orders a payment of money from a bank account. Technically, a Cheque is a negotiable
instrument instructing a financial institution to pay a specific amount of a
specific currency from a specified transactional account held in the drawer's
name with that institution.
Parties related to Cheque
There
are three parties to a cheque: 1) Drawer, 2) Drawee and 3) Payee.
1. Drawer: Is a person or entity that
writes / makes the cheque
2. Drawee: Is a bank / financial
institution on which the cheque is drawn / presented to pay the amount.
3. Payee: Is the person to whom the cheque
is payable.
Both
the drawer and payee may be natural persons or legal entities.
An Online Savings Account is a very good alternative to your regular store front bank for one big reason and that is the fact that in most cases, online banks offer much higher interest rates.
ReplyDelete