What is a Drawee?

A drawee is a party that is responsible for making payments to the drawer (the party that issues a draft or a check). In other words, the drawee is the party that is expected to receive the funds and honor the draft or check.

For example, if you write a check to someone, the payee (the person who receives the check) is the drawee, as they are the party that is expected to receive the funds and deposit or cash the check. Similarly, if you issue a draft (a written order to pay money) to someone, the party that is expected to receive the funds and honor the draft is also the drawee.

The term "drawee" is commonly used in the context of banking and finance, where it is often used interchangeably with the term "payee." However, while the payee is the party that receives the funds, the drawee is the party that is responsible for making the payment.