Suppose a student wants to apply in a course in Delhi University. The university requires payment of the application fee to be done through a secure means, like a DD. In this case, the student would apply to his bank to get a DD issued favouring Delhi University. Suppose the student resides in Mumbai. Suppose he holds an account in a particular branch of SBI in Mumbai. In this case, this particular SBI branch in Mumbai would be the Drawer branch, a SBI branch located in Delhi ( typically the Service Branch ) would be the Drawee branch and Delhi University would be the payee.
Since it is a cheque issued by a bank ( that is, drawer is a bank ) it does not carry the signatures of the customer, unlike the case of ordinary cheques which carry the signature of the customer ( who is the drawer ). Instead, a DD carries signatures of one or two bank officials, depending on the DD amount. The name of the Drawee branch is mentioned on the bottom left hand corner while the name of the Issuing ( Drawer ) branch is mentioned on the top left corner.
Pay Orders, also called Local DDs or Bankers' cheques, are cheques where the drawer and the drawee branch is the same. These are used for local payments
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