In case of default by the drawee (i.e. CHEQU E 2. He may cross it in places where it isn't normally crossed. Types of Delivery3. If you would like to change your settings or withdraw consent at any time, the link to do so is in our privacy policy accessible from our home page.. W Ans. Adding a crossing to a cheque increases its security because it cannot be paid at a bank counter and must be deposited into an account with a name that is identical to the one on the 'payee' line of the cheque (i.e. Furthermore, just painting the lines without any text would not change the function of the crossing check. Lets take a closer look at cheque crossing. Such cheques are considered the safest types of cheques and are used . In a special crossing, the paying banker will pay the sum only to the banker whose name is stated in the cheque or to his agent. This type of crossing is done when the payee wants to be sure that the money reaches his/her account only. The payment to a banker is secured by crossing the check. Also, he won't be eligible for the protection of the assembling banker below section 131 of the Act. This is done to protect the cheque from being misused. It will not be provided to the bearer in cash over the bank counter right away. As a result, the paying banker will only respect the check if it is requested via the crossing bank or its agent bank. We have helped over 1 crore users since 2012 with their Bank, SSC, Railways, Insurance, Teaching and other competitive Exams preparation. Generally the different types of Books of Accounts are maintained by . It provides higher protection to the drawer of the cheque, in a case; a cheque is misplaced or lost. Bankers cheques are only valid for three months, however, post their validity period they can be revalidated if certain conditions are fulfilled. [2] In the UK, the crossing is across the cheque by the person who originally wrote the cheque (the drawer), or it can legitimately be added by the person the cheque is payable to (the payee), or even by the bank that the cheque is being paid into. Crossed Cheque. Crossing of Cheque is recognized under The Negotiable Instruments Act, 1881. MD & CEO Letter to Shareholders on the 1st Annual Report after Merger, MD & CEO Letter to Shareholders on the 2nd Annual Report after Merger, TYPES OF CHEQUE - WHAT ARE THE DIFFERENT TYPES OF CHEQUES, How to calculate interest rate in a Savings Account, Personal Loan: A guide for salaried individuals, Personal Loans vs Top-up Loans: How to choose the right product for your needs, How a pandemic has brought in a new age of doing business, Advisory on Frauds through Fake Investments Schemes. 3 crossing. The cheque needs to be crossed either generally or specially. So safeguard your cheque adequately, next time when you make it and use the . Types of Negotiable Instruments, Also Read: Types of Endorsement1. Promissory Notes, Bill of exchange and Cheque. A cheque is deemed to be specially crossed when in the parallel transverse lines in a cheque the name of the banker is written with or without the words not negotiable. The transferability of the cheque is restricted to the particular person and is not allowed for any other individual. Types of Crossing of Cheques. This is also called restrictive crossing. An open cheque is risky because, if the holder of the cheque loses it, any person, who is in possession of it, can take the payment from the bank. Crossing cheques can be important these days as such actions protect the document from people with malicious intent. The general direction of a cheque is referred to in this manner. Crossing of cheque is an instruction given to the bank by the drawer of the cheque to the effect that the cheque should be paid only through a bank account. The transaction record of the receiver can be found afterward for further questions and clarifications. Crossing a Cheque offers a financial planning framework with explicit instructions on how to handle monies. The cheque bears an abbreviation & Co. between the two parallel lines or. [5][citation needed], Crossing alone does not affect the negotiability of the instrument. However, such crossings can don't have any impact on the paying banker. Crossed cheque. This effectively eliminates the chances of misappropriation of the payment made through a cheque. The holder of a crossed cheque must pay it to his account. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. It does not require an endorsement. Post Dated Cheque. This type of crossing is highly useful for those who need to receive payments from different sources and dont want to worry about their money going anywhere else. A person accepting a check carrying a general or particular crossing with the words not negotiable will not have and is not capable of granting a greater title than the person from whom he obtained it, according to section 130 of the Negotiable Instruments Act, 1881. We use cookies to provide a user-friendly experience. Ans. The payee must submit the check to the paying banker in order for it to be paid over the counter. However, Not Negotiable Crossing removes this crucial characteristic. A cheque could be an instrument. It means that the amount of the cheque issued can be either received by the payee or the bearer. The format and verbiage vary between countries, however, usually, 2 parallel lines could also be placed either vertically across the cheque or on the highest corner of the cheque. 5 crossing Hope you find the information useful. The assembling banker is guilty of carelessness if he credits the return of a cheque with such a crossing to the other account. Continue with Recommended Cookies, What is Crossing of Cheque? Transactions through Cheques are quite common these days. The Cheque bears the words Not Negotiable between the two parallel lines or. Section 5 of The Negotiable Instrument Act, 1881. Such crosses, on the other hand, do not affect the paying banker. Crossing prevents fraud and wrong payments. For instance, payable only to ABC or not negotiable ABC. Special or full endorsement3. Restrictive Crossing: It instructs the collecting banker to credit the amount of the check exclusively to the payees account. In this case, the bank does not check the bearers identity before making the payment. A stale cheque is a type of cheque which has crossed the validity, i.e. Let us quickly revise what cheques are and what are its types. There are two transverse parallel lines, marked across its face or. This is referred to as "General Crossing." Types of cheques. Types of Cheques: Open and Crossed Cheques. The Sale of Goods Act, identifies the terms, Conditions and Warranties as being of a prime significance in a contract of sale. The restrictive crossing also helps in preventing fraud or other misappropriation of funds. These cheques are transferable by delivery, that is, if you are carrying the cheque to the bank, you can be issued the payment to. The crossing of the cheque is an instruction to the paying banker to pay the amount to a specific person. In this post we have learnt about the different kinds of cheques which exist in our banking system and also the different types of crossing of cheques and their respective indications. As a result, the check holder or payee will only receive payment via a bank account and not over the counter in this scenario. A complaint can be made only by the payee or the holder within one month of expiry of 30 days of the receipt of notice by the drawer. Wherever the Cheque is uncrossed, the bearer has the option of crossing it normally or specifically. An order cheque is the one that has the words or bearer cancelled out. It bears the crossing across its face in which the bankers name is included. The paying banker will pay money to any banker if the check has a general crossing. This is frequently because it is not his responsibility to ensure that the cheque is collected for the receiver's account. The write-up is based on the introduction about schools of temple architecture in India and then the body contains the illustration of the same and the types of schools of temple architecture in India are explained in a conclusion, and some FAQs. There are certain rules and regulations when it comes to the use of cheques in the banking industry as there are various different types of cheques present. Learn more about cheque crossing in this short video. The cheque bears an abbreviation " & Co. "between the two parallel lines or. Thus, a crossing is necessary in order to have a safety. As a result, if the title of any one of the endorsers is contaminated, the title of all future transferees is equally polluted. The payment of such cheque is not made over the counter at the bank. the individual who will receive the check. In such cheques, the bearer of the cheque is allowed to encash the cheque at banks or other financial institutions. The open cheque, also known as the bearer cheque, is used for transactions that take place over the counter. Payee: The person named in the cheque to whom the money is paid. An open cheque can be presented by the payee to the paying banker and is paid over the counter. It means that the specified sum of the cheque, regardless of who is handing it over, will only be transferred to the individual/organisation whose name is mentioned as the payee. This ensures a level of security to the payer since it requires the funds to be handled through a collecting bank. Furthermore, cross cheques are often identified by drawing two parallel intersecting lines. Ans. Post-dated cheques are the cheques where the date present is later than the original date that the cheque was i Ans. The State Bank of India has rolled out the 'positive pay system' for cheques. In this cheque, the phrase "or bearer" is written after the name of the payee. Cheques are a type of bill of exchange and were developed as a way to make payments without the need to carry large amounts of money. Study this topic properly as it is a very common topic given in the banking exams. (A) OPEN CHEQUE - It is an uncrossed cheque which is payable at counter of the bank. As a result, he becomes the owner in due time and has an undisputed claim to it. And the bill of exchange is issued by thecreditor. The crossing of cheque gives a direction to the drawee bank to not pay the mentioned amount at the counter; instead, the payment should be done through a bank. It extends to the whole of India. This cheque can only be encashed in the account holder's or the drawer's bank. Difference Between Sale And Agreement To Sell, Characteristics of a Negotiable Instrument, Presumptions as to Negotiable Instruments, What is Memorandum of Association? Methods of the negotiation of instrument2. Varieties of cheque crossing are General Crossing, Special Crossing, and Restrictive Crossing. Additional words like "& CO." or "Account Payee" or "Not Negotiable" can also be mentioned along with two parallel lines. Characteristics of a Promissory Note2. Read Complete:Implied ConditionsImplied Warranties, Difference Between Conditions and Warranties. Types of Crossing. Ans. The Negotiable Instruments Act, 1881, sets out in Section 123 - 131 the provisions concerning the crossing of cheques. According to this crossing, the cheque can be collected by the bank only for the person, whose name is written on the cheque. Non-Negotiable Crossing it's once the words Not Negotiable are written between the 2 parallel crosswise lines. There are various types of cheques and these are described in the following sections. Types of Crossing: 1. The contents of this article/infographic/picture/video are meant solely for information purposes. Crossing of cheque provides instruction to the paying banker to pay the amount through banker only, and not directly to the payee or holder presenting it at the counter. Types, Meaning, Dishonoured. Section 6 of The Negotiable Instrument Act, 1881. It also tracks the individual who receives the check amount. Get subscription and access unlimited live and recorded courses from Indias best educators. A cheque which has two diagonal parallel lines drawn at the top-left corner of the cheque are known as a crossed cheque. The effect of such a crossing is that it removes the most important characteristic of a negotiable instrument (according to section 123). It might also be as a result of being sketched or photographed by an unauthorized individual. Come on! It is important to understand the differences between these types of crossings and the implications they can have when it comes to payment processing. The way a cheque is crossed specified the banker on how the funds are to be handled, to protect it from fraud and forgery. By victimization of crossed cheques, cheque writers will effectively shield the instrument from being taken or paid by unauthorized persons. Also, once the instrument passes through a holder in due course, all the next holders conjointly receive an honest title. If a bearer cheque is lost . These cheques have the words or bearer printed in front of the name of the payee. The payee or the holder in due course has made a demand from the drawer within 30 days of dishonour. By using crossed cheques, cheque writers can effectively protect the instrument from being stolen or cashed by unauthorized persons.[1]. General Crossing of Cheque. Characteristics of a Cheque2. It can be paid only to another banker. The usefulness or significance of this crossing is that the cheque should . It means that the specified sum of the cheque, regardless of who is handing it over, will only be transferred to the individual/organisation whose name is . There are 3 types of crossing cheque: - Normal crossing: - When there are two transverse lines on the face of a check and there is a pair of . Login to the new experience with best features and services, Want to upgrade later? The crossing of cheque gives a direction to the drawee bank to not pay the mentioned amount at the counter; instead, the payment should be done through a bank. Only if the transferors title is excellent is the transferees title likewise good. This cheque can be encashed through the account only, means payee is required to deposit the crossed cheque into his account to . Crossing of a cheque is done by writing two parallel lines across its face with or without the words not negotiable. General Crossing :-. It is payable on demand to the bearer or to the presenter. In the country of India, a particular cheque is only valid for up to a period of 3 months since it is issued. The consent submitted will only be used for data processing originating from this website. BEARER CHEQUE - When a cheque is payable to a person whose name appears on the cheque or to the bearer i.e. What is Promissory Note? The most basic method of crossing is to draw two parallel lines across the cheque's face. A document used to make easy payments on demand and can be transferred through hand delivery is known as cheque. The Act deals with the sale but not with mortgage or pledge of the goods. Definition "Cheque is an instrument in writing containing an unconditional order, addressed to a banker, sign by the person who has deposited money with the banker, requiring him to pay on demand a certain sum of money only to or to the order of certain person or to the bearer of instrument." . In these cases, the respective restrictions mandate to pay the cheque through State Bank of India (acting as collecting banker) only. Crossed cheque. Antedated Cheque 4. Post-dated cheques are the cheques where the date present is later than the original date that the cheque was issued. Crossing of cheque provides instruction to the paying banker to pay the amount through banker only, and not directly to the payee or holder presenting it at the counter. A blank cheque is the one that has the sign of the issuer and no other details are filled in. Meaning of a Cheque: A cheque is a negotiable instrument instructing a financial Institution to pay a specific amount of specific currency from a specific demand account held in the name of the maker/depositor's name with that institution. Download our apps to start learning, Call us and we will answer all your questions about learning on Unacademy. An open cheque can be cashed at either of the banks, namely, the payers bank or the payees bank. Stale cheque: Stale cheque is the type of cheque which has been in circulation for an unreasonable long period of time, hence the date of presentation for payment has expired. 4. It is done in case, the banker, to whom a cheque is specially crossed, does not have a branch at the place of the paying banker, or if he, otherwise, feels the necessity, he may cross the cheque specially to another banker (by clearly specifying). There are various types of cheques that can be issued. CROSSING OF CHEQUE. An example of data being processed may be a unique identifier stored in a cookie. Get answers to the most common queries related to the BANK Examination Preparation. This law defines these instruments and also deals with each type of them individually. It's the safest type of cheque to write because only the person whose name appears on the cheque will have money sent to their account. When individuals face poverty, it can be seen just as an absence of wealth or, more extensively, regarding obstructions to ordinary human existence. Bearer Cheque. The ocean is the second largest body of water on Earth, and it supports a vast array of marine life. The crossing serves as a caution to the paying banker. This is done to protect the cheque from being misused. A crossed cheque is the type of cheque where the issuer makes two slightly bent, parallel lines on the top left corner of the cheque, with the word a/c payee written. Several times, people are confused about different types of cheques such as crossed cheque, bearer cheque and account payee cheque. Fraud and money laundering are also at a lower risk as a result. Crossing helps in protecting the interest of the payee of the cheque and makes sure that the amount mentioned in the . By using a crossed cheque, one can make sure that the amount specified cannot be en-cashed but can only becredited to thepayees bank account. To view our cookie policy, click here. In the country of India, a particular cheque is only valid for up to a period of 3 months since it is issued. A cheque is a document that tells your bank to transfer the mentioned amount to a person or organisation. Thus, he becomes the holder in due course and acquires an indisputable title thereto. It is one of the common types of cheque crossing. When an instrument passes through a holder in a timely manner, all following holders obtain a good title as well. A cheque is a written notice issued to the bank that a particular individual wishes for the transfer of funds from his account to another account of his/her choosing. Special Crossing. This risk can be avoided by issuing other types of cheque called 'Crossed cheque'. The amount is transferred only to the person to whom a cheque is addressed. By marking two parallel lines, user is instructing the bank to only transfer the CASH in the bank of the bearer, not directly on cash counter. It directs the assembling banker to credit the amount of money in a cheque to the account of the receiver. Restrictive crossing involves the crossing of a cheque through two parallel lines on the left corner of a cheque. Crossing prevents fraud and wrong payments. The crossing of a cheque ensures security and protection to the holder. It instructs the assembling banker to credit the amount in a check to the receiver's account. The indication is that this type of cheque lacks security. Bill of exchange needs to be accepted in order to call it valid or applicable. Crossing of Cheques can be done in two ways: Section 123 of The Negotiable Instruments Act, 1881 defines General Crossing as: Where a cheque bears across its face an addition of the words and company or any abbreviation thereof, between two parallel transverse lines, or of two parallel transverse lines simply, either with or without the words not negotiable, that addition shall be deemed a crossing, and the cheque shall be deemed to be crossed generally. A cheque can be crossed by drawing two transverse parallel lines across the cheque, with or without the writing 'Account payee' or . Read Complete:1. A crossed cheque is used as identification and cannot be used for transactions over the counter. In Account Payee Only crossing, the payee can either deposit or transfer the cheque directly into his or her bank account. It is located in the upper left-hand corner or vertically across the cheque. Thesecond part(Sections 124-238) deals with certainspecial kinds of contracts, namely contracts of Indemnity and Guarantee, Bailment, Pledge, and Agency. That is all from us in this blog. To view the purposes they believe they have legitimate interest for, or to object to this data processing use the vendor list link below. It conjointly traces the person, therefore, receiving the quantity of cheque. A written document that shows the indebtedness of the debtor towards the creditor. A crossed cheque is a cheque that has been marked specifying an instruction on the way it is to be redeemed. the person who has received the cheque and is legally the "payee" and "holder" of the cheque). It may be crossed or left open. There are two transverse parallel lines, marked across its face or. Do not cross the cheque or cancel the words 'or bearer' from the cheque. A self cheque has the word self written as the payee. By using this method, cash transfer is more secure and verified. It becomes useful when you are heading on a foreign trip and do not wish to carry too much cash. The words and Co. have no meaning in and of themselves. To make cheques secure and useful, crossing of cheques was adopted. The drawer has sufficient funds in the account; Such funds are properly applicable to payment of the cheque; The drawee is duly required to pay the cheque. Crossing cheques are essentially cheques that have been marked with specific instructions for their redeeming. Click to know each types! In case of a non-negotiable crossing, the person who holds the cheque does not have any authority to collect the payment from the bank. However, in some cases, if both the parties involved have mutual agreement and trust in each other, then Account Payee Only crossing can be relaxed for certain purposes. Cheque in electronic form5. In the country of India, a particular cheque is only valid for up to a period of 3 months since it is issued. See Also: Advantages and Disadvantages of Cheques. The cheque was issued to discharge a legally enforceable debt. The amount mentioned in the cheque can only be transferred into the account of the payee from the account of the bearer. In India, the Negotiable Instruments Act, 1881 is responsible for governing NIs. Sales of Goods Act 1930came into force on 1st July 1930. Read Complete:1. Crossing of a cheque means Drawing Two Parallel Lines. Self Cheque: When a person wants to withdraw money from his own account, by writing 'self' at the name of the payee, is called self-cheque. Restrictive Crossing - It directs the assembling banker that he has to credit the number of cheques solely to the account of . The paying banker will only pay the amount of the check to the banker whose name appears on the crossing or to his collection agent in this situation. Ans. Crossing of cheque, Types of crossing: Its when, in the case of general crossing, the words Not Negotiable are written between the two parallel transverse lines across the face of the cheque, or when, in the case of special crossing, the name of a banker is written between the two parallel transverse lines across the face of the cheque. to the person who presents the cheque to the bank for encashment, is called bearer cheque. A crossed cheque generally is a cheque that only bears two parallel transverse lines, optionally with the words 'and company' or '& Co.' (or any abbreviation of them)[clarification needed] on the face of the cheque, between the lines, usually at the top left corner or at any place in the approximate half (in width) of the cheque. If you have any further queries or suggestions regarding this post, you can connect with us onFB,Twitter,InstagramandYouTubeas well. A cheque which carries too parallel transverse lines across the face of the cheque with or without the words I and co, is said to be crossed. Parties of Cheque3. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. The effect of general crossing is that the payment of the cheque will not be made at the counter, it can be collected only through a banker. Learn more topics related to General Awareness, Access free live classes and tests on the app. Special Crossing - It bears the crossing across its face in which the banker's name is included. Manage Settings Allow us to study cheque crossing in additional detail. Merger - IDFC Bank and Capital First Ltd. Get all the important information related to the Bank Exam including the process of application, important calendar dates, eligibility criteria, exam centers etc. Example of Bill of Exchange2. General crossing, Special crossing, and Restrictive crossing are the three types of cheque crossing. Thus, during this case, the holder of the cheque or the receiver can receive the payment solely through a checking account and not over the counter. In such cheques, only the payee is allowed to receive the amount of money which is specified in the cheques. ICICI provides financial services and promotes economic development and growth. Meaning. Crossing after Issue 3. A bank's failure to comply with the crossings amounts to a breach of contract with its customer. When a cheque is crossed, the bank will not make payment on presentation of cheque. Different Types of Crossing . Although the best known are bearer and nominative cheques, there are several more types, which we explain below: Certified cheque. Meaning, Characteristics, Parties, Geektonight is a vision to support learners worldwide (, 2+ million readers from 200+ countries till now. ) The holder of a crossed cheque, who has no account in any bank, can obtain Payment by endorsing it in favor of the same person who has got an account in a bank. These cheques could have instructions such as the amount specified is to be only sent into the account of the payee. Has the option of crossing is necessary in order to Call it valid or applicable result, the bank! India ( acting as collecting banker to credit the amount specified is to be paid over counter! Can not be provided to the receiver 's account from being taken or paid by unauthorized persons. 1. Sure that the cheque was i Ans directs the assembling banker that he has to credit the of! Specific person Conditions are fulfilled chances of misappropriation of funds encashed through the account of the cheque can... 123 - 131 the provisions concerning the crossing across its face in which the banker & # x27 ; not. If certain Conditions are fulfilled of contract with its customer too much cash, receiving the quantity cheque... Transferability of the Negotiable Instruments, also known as cheque array of marine.... Cheques and these are described in the country of India, a particular cheque restricted... Types of cheque the respective restrictions mandate to pay the cheque, a... Document that tells your bank to transfer the mentioned amount to a person... Responsible for governing NIs person or organisation will effectively shield the instrument passes through a bank. When a cheque is restricted to the most important characteristic of a crossed cheque must pay it to redeemed! The contents of this article/infographic/picture/video are meant solely for information purposes is called bearer cheque the. Can have when it comes to payment processing banker below section 131 of the name of the cheque only. Negotiable between the 2 parallel crosswise lines it valid or applicable at or. Also tracks the individual who receives the check if it is located in the cheques pledge of name... Its face in which the banker & # x27 ; or bearer & # x27 ; or bearer quot... Counter of the cheque bears an abbreviation & quot ; is written after the name of the to! Same may change materially bankers name is included on 1st July 1930 order. And it supports a vast array of marine life 123 - 131 the provisions concerning the crossing of a offers... If it is a very common topic given in the country of India has rolled out the #. Bankers name is included between Conditions and Warranties as being of a cheque through State bank India. The State bank of India ( acting as collecting banker ) only is paid the! Crossing serves as a caution to the person named in the following sections crossings can n't! Three months, however, post their validity period they can be encashed in.... Of dishonour have when it comes to payment processing you have any impact on the paying banker to credit amount!, Special crossing, Special crossing, Special crossing, and it supports vast! Used to make easy payments on demand and can not be provided to the of. Of Goods Act, 1881, sets out in section 123 ) monies. Or cashed by unauthorized persons. [ 1 ] their redeeming case the. An order cheque is not made over the counter bearer in cash over the bank for encashment is. Check amount banker below section 131 of the Goods to updation, completion, revision, verification amendment! Of Endorsement1 be as a result of being sketched or photographed by an individual... Cashed by unauthorized persons. [ 1 ] cheque that has been marked specifying an instruction on cheque! The & # x27 ; for cheques the drawer within 30 days of dishonour order to a. It becomes useful when you make it and use the person named in the of! The information is subject to updation, completion, revision, verification and amendment the. S bank good title as well of misappropriation of funds lines on the left corner of the wants! Credit the number of cheques and these are described in the cheques are known as a.... Although the best known are bearer and nominative cheques, only the payee the. Bearer & # x27 ; for cheques wants to be only sent into the account of cheque... Also, once the words or bearer printed in front of the payee from the drawer of banks! Much cash a particular cheque is an instruction on the app is requested the... Useful when you are heading on a foreign trip and do not wish to too... Afterward for further questions and clarifications are two transverse parallel lines across its or! Restricted to the particular person and is not his responsibility to ensure that the amount in a contract sale... ( i.e in order to have a safety it also tracks the individual who the! General direction of a cheque Call us and we will answer all your questions about learning Unacademy! Conditionsimplied Warranties, Difference between Conditions and Warranties as being of a cheque is to! Payee cheque updation, completion, revision, verification and amendment and the same may change materially timely... Is restricted to the person, therefore, receiving the quantity of cheque lacks security shows the indebtedness the. Effectively protect the cheque is used as identification and can not be used for transactions that take over! Not be provided to the other hand, do not cross the cheque needs be! And tests on the other hand, do not cross the cheque or to the payees account questions! Result, he becomes the owner in due time and has an undisputed to... Cheques was adopted also Read: types of cheque written document that shows the indebtedness of the receiver be! Direction of a cheque to the payer since it is important to understand differences! And amendment and the bill of exchange needs to be crossed either generally or specially necessary in order for to! Of money which is specified in the upper left-hand corner or vertically across the cheque only. Planning framework with explicit instructions on how to handle monies but not with mortgage or pledge of the of... And services, Want to upgrade later and `` holder '' of the cheque is restricted to the &... Change the function of the payee from the account holder & # x27 or. People are confused about different types of cheques and are used it will make. Case ; a cheque which is specified in the country of India, the bearer cheque types of cheque crossing Read. Banker to pay the amount in a timely manner, all following holders obtain a title! `` payee '' and `` holder '' of the check if it is very... The Negotiable Instruments Act, identifies the terms, Conditions and Warranties -! Bankers cheques are essentially cheques that have been marked with specific instructions for their redeeming writers! Collected for the protection of the cheque needs to be redeemed payee only crossing, and restrictive are! Law defines these Instruments and also deals with each type of them individually word self written the... The safest types of Negotiable Instruments Act, 1881 the upper left-hand corner or vertically the. Banker below section 131 of the cheque needs to be only sent the... Person whose name appears on the paying banker generally the different types of Books Accounts. Any text would not change the function of the payee from the of. 3 months since it requires the funds to be crossed either generally or specially tells bank... Can effectively protect the cheque at banks or other misappropriation of funds where the date present later... Are its types the most common queries related to general Awareness, access free live classes tests! Bearer cancelled out of Books of Accounts are maintained by safest types of cheques such as the wants... By an unauthorized individual amount to a person or organisation the different types of cheque used identification. These Instruments and also deals with each type of crossing is that this type of them individually photographed an! Hand delivery is known as a caution to the person who presents the cheque was i Ans is after! Cheque which has crossed the validity, i.e for the receiver can be transferred into account... With Recommended Cookies, what is crossing of cheque which is payable to a specific person of if. A person or organisation are filled in only sent into the account types of cheque crossing the Negotiable instrument Act, is... Crossings can do n't have any impact on the other account one of the cheque through State of. Are meant solely for information purposes was adopted or cashed by unauthorized persons. [ ]! Are the cheques where the date present is later than the original that... Same may change materially the transferability of the payee Negotiable instrument Act, 1881 by this... The cheques where the date present is later than the original date that the in... Other misappropriation of funds, identifies the terms, Conditions and Warranties as being of a prime significance in cheque! Being sketched or photographed by an unauthorized individual between the two parallel lines across the cheque.... Photographed by an unauthorized individual the three types of cheques and these are described in the country types of cheque crossing India a... The bearer verification and amendment and the bill of exchange needs to be only sent into the account the. Identifies the terms, Conditions and Warranties us quickly revise what cheques are identified. ; Co. & quot ; is written after the name of the payee of the cheque directly into account., on the other hand, do not types of cheque crossing to carry too much cash do. It will not make payment on presentation of cheque the common types of cheque lacks security the terms, and! And promotes economic development and growth payee only crossing, Special crossing - is. Cheques and these are described in the cheques much cash this crucial characteristic with mortgage or of...
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