Who is the drawee of a cheque under the Negotiable Instruments Act, 1881?
Question and options
Who is the drawee of a cheque under the Negotiable Instruments Act, 1881?
The RBI
The person issuing the cheque
The bank on which the cheque is drawn
The person receiving the cheque
Answer and explanation
Correct answer: C - The bank on which the cheque is drawn
A cheque is defined in section 6 of the Negotiable Instruments Act, 1881 as a bill of exchange drawn on a specified banker, and section 7 calls the person directed to pay the drawee. The person issuing the cheque is the drawer and the person receiving it is the payee; the Reserve Bank is not a party to an ordinary cheque.
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