Crossing Of Cheque - Dissimilar Types Of Cheque Crossing

What is Crossing of Cheque ?

A banking venture represent is a negotiable instrument. During the procedure of circulation, a banking venture represent may move lost, stolen or the signature of payee may move done past times another individual for endorsing it. Under these circumstances the banking venture represent may instruct into incorrect hands.

Crossing is a pop device for protecting the drawer together with payee of a cheque. Both bearer together with lodge cheques tin move crossed. Crossing prevents fraud together with incorrect payments. Crossing of a banking venture represent way "Drawing Two Parallel Lines" across the confront of the cheque. Thus, crossing is necessary inwards lodge to accept safety. Crossed cheques must de presented through the banking venture solely because they are non paid at the counter.

Different Types of Crossing ↓

1. General Crossing :-

Generally, cheques are crossed when

1. There are 2 transverse parallel lines, marked across its confront or
2. The banking venture represent bears an abbreviation "& Co. "between the 2 parallel lines or
3. The banking venture represent bears the words "Not Negotiable" betwixt the 2 parallel lines or
4. The banking venture represent bears the words "A/c. Payee" betwixt the 2 parallel lines.

A crossed banking venture represent tin move made bearer cheque past times cancelling the crossing together with writing that the crossing is cancelled together with affixing the sum signature of drawer.

Specimen of General Crossing ↓

2. Special or Restrictive Crossing :-

When a item bank's refer is written inwards betwixt the 2 parallel lines the banking venture represent is said to move peculiarly crossed.

Specimen of Special or Restrictive Crossing ↓

In improver to the give-and-take bank, the words "A/c. Payee Only", "Not Negotiable" may likewise move written. The payment of such banking venture represent is non made unless the banking venture named inwards crossing is presenting the cheque. The upshot of exceptional crossing is that the banking venture makes payment solely to the banker whose refer is written inwards the crossing. Specially crossed cheques are to a greater extent than condom than a to a greater extent than oft than non crossed cheques.