account payee


Also found in: Financial.

account payee

a crossing or direction on a BILL OF EXCHANGE that the drawee should credit funds only to the bank account of the payee. Before 1992 these words had no effect upon the ability of the instrument to be negotiated, but the law was changed making it impossible for the cheque to be transferred when the words ‘account payee’ are used.
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The memorandum issued, After successful roll out of electronic disbursement of all state government payments drawn through bills in Treasuries, it is now decided to replace the system of drawal and disbursement of funds relating to works expenditure through paper cheques by account payee electronic cheques for direct credit of the proceeds to the payee s bank account.
1,20,000/- is to be deposited in the form of Account payee Demand Draft in favour of IIT
The Account Payee Demand Draft Should Be In Favour Of Fa And Cao Dlw Varanasi Payable At Varanasi.