Crossing Of Cheque - Dissimilar Types Of Cheque Crossing

What is Crossing of Cheque ?

A banking enterprise jibe is a negotiable instrument. During the procedure of circulation, a banking enterprise jibe may last lost, stolen or the signature of payee may last done past times another individual for endorsing it. Under these circumstances the banking enterprise jibe 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 gild cheques tin forcefulness out last crossed. Crossing prevents fraud as well as incorrect payments. Crossing of a banking enterprise jibe agency "Drawing Two Parallel Lines" across the appear upwardly of the cheque. Thus, crossing is necessary inwards gild to accept safety. Crossed cheques must de presented through the banking enterprise exclusively because they are non paid at the counter.

Different Types of Crossing ↓

1. General Crossing :-

Generally, cheques are crossed when

There are 2 transverse parallel lines, marked across its appear upwardly or
The banking enterprise jibe bears an abbreviation "& Co. "between the 2 parallel lines or
The banking enterprise jibe bears the words "Not Negotiable" betwixt the 2 parallel lines or
The banking enterprise jibe bears the words "A/c. Payee" betwixt the 2 parallel lines.

A crossed banking enterprise jibe tin forcefulness out 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 item bank's advert is written inwards betwixt the 2 parallel lines the banking enterprise jibe is said to last especially crossed.

Specimen of Special or Restrictive Crossing ↓

In add-on to the give-and-take bank, the words "A/c. Payee Only", "Not Negotiable" may besides last written. The payment of such banking enterprise jibe is non made unless the banking enterprise named inwards crossing is presenting the cheque. The number of particular crossing is that the banking enterprise makes payment exclusively to the banker whose advert is written inwards the crossing. Specially crossed cheques are to a greater extent than rubber than a to a greater extent than oft than non crossed cheques.