Cheque is an order issued on a bank by a person or firm having deposit in the bank to pay on demand the mentioned sum of money to the person or the firm named there in or to the bearer of the cheque. Cheque is in printed form supplied to the depository the bank for withdrawing cash. It is a very convenient and safe method of many payment. Blank cheque forms are supplied to the depositors in a book form where all application form for obtaining another cheque book is attached to it. Each cheque las a counterfoil for reference purpose to the depositor. When the cheque is presented to the bank for payment, it verifies whether the signature confirms to the specimen signature, date, and balance of money is sufficient in the account to cover the cheque amount. When the bank is satisfied, it will make the payment. The parties involved in cheque are:

i)  Drawer:- A firm or an organization or a person having deposits in bank and who issues a cheque, is a drawer. The person or the firm in whose name the account stands is the drawer.

ii)  Drawee:- Bank is a drawee because it receives the order from itsm customers/depositors for making the payment of a sum of money on demand. So, the bank on which the cheque is drawn is known as drawee.

iii)  Payee:- The person or the party receiving the payment from bank is called payee. The payees name is written in the cheque by the drawer. The payee gets the payment of the amount on presentation of cheque in the bank. The bank pays the money to the payee after verifying the amount in words and figure, specimen signature, date, account number etc.