What is cheque in bank

A cheque is a negotiable instrument that acts as a written order, instructing a bank to pay a specific sum of money from the drawer's account to a named person or entity (the payee). In India, cheques are governed by the Negotiable Instruments Act, 1881. Key components include:

• Drawer: The account holder who issues and signs the cheque.
• Drawee: The specific bank branch where the account is maintained.
• Payee: The individual or organization receiving the funds.
• Amount: The sum to be paid, written in both words and figures.