Q: What is the significance of issuing account payee cheque?

Ans: While issuing the cheque, a drawer should draw two parallel lines on its left side and should write 'account only' in between them. By doing this, the cheque becomes an account payee cheque and the payment will be made only in the bank account of the payee. In case of any type of fraud, the payee can be traced. Having the above- mentioned precautions, a drawer can be avoided from fraud to a great extent.

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