Crossing Of Cheque - Dissimilar Types Of Depository Fiscal Establishment Gibe Crossing

What is Crossing of Cheque ?

A agree is a negotiable instrument. During the procedure of circulation, a agree may last lost, stolen or the signature of payee may last done past times another soul for endorsing it. Under these circumstances the agree may become into incorrect hands.

Crossing is a pop device for protecting the drawer as well as payee of a cheque. Both bearer as well as guild cheques tin last crossed. Crossing prevents fraud as well as incorrect payments. Crossing of a agree agency "Drawing Two Parallel Lines" across the confront of the cheque. Thus, crossing is necessary inward guild to accept safety. Crossed cheques must de presented through the banking concern 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 agree bears an abbreviation "& Co. "between the 2 parallel lines or
3. The agree bears the words "Not Negotiable" betwixt the 2 parallel lines or
4. The agree bears the words "A/c. Payee" betwixt the 2 parallel lines.

A crossed agree tin last made bearer cheque past times cancelling the crossing as well as writing that the crossing is cancelled as well as affixing the amount signature of drawer.

Specimen of General Crossing ↓

2. Special or Restrictive Crossing :-

When a detail bank's mention is written inward betwixt the 2 parallel lines the agree is said to last especially crossed.

Specimen of Special or Restrictive Crossing ↓

In improver to the give-and-take bank, the words "A/c. Payee Only", "Not Negotiable" may too last written. The payment of such agree is non made unless the banking concern named inward crossing is presenting the cheque. The termination of especial crossing is that the banking concern makes payment solely to the banker whose mention is written inward the crossing. Specially crossed cheques are to a greater extent than prophylactic than a by as well as large crossed cheques.