See Also: Advantages and Disadvantages of Cheques. Difference Between Sale And Agreement To Sell. 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. 3) Crossed cheque. Restrictive crossing involves the crossing of a cheque through two parallel lines on the left corner of a cheque. One of the most significant characteristics of a negotiable instrument is that it grants a good title to a person who receives it in good faith, without negligence, for value, before maturity, and without knowledge of the transferors title defect. Crossed cheque. We and our partners use cookies to Store and/or access information on a device. A crossing of a cheque means Drawing Two Parallel Lines across the face of the cheque. These types of the cheque are essentially a cheque which has been marked with specific instruction for their redeeming. It helps in providing an extra layer of security and helps keep track of all transactions easily. These cheques have the words or bearer printed in front of the name of the payee. 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. Self Cheque. 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." . The check's negotiability is limited by this sort of crossing. A special crossing cheque is a sort of check that has the banker's name across it, with or without the phrase 'not negotiable,' according to Section 124 of Negotiable Instruments Act, 1881. A crossing may have the name of a specific banker added between the lines. Currently, a cheque is considered valid until three months from its issued date. cheque bears across its face an addition of 2 parallel crosswise lines. Crossed Cheque. 1. Business Law Meaning3. Crossing of a cheque is a process of marking two parallel lines on the face of a cheque with or without mentioning a bank name between them. Special Crossing is a type of crossing that is done when the payee or the holder of the cheque is directed to deposit the cheque in a specific bank account only. There are various types of cheques and these are described in the following sections. It extends to the whole of India. Home Others Banking What is Crossing of Cheque | Types of Crossing of Cheques. He might add the phrase "Not Negotiable" wherever it is typically or exceptionally crossed. So safeguard your cheque adequately, next time when you make it and use the . Sales of Goods Act 1930came into force on 1st July 1930. Stale Cheque Simply put, the bearer cheque is a type of cheque that is payable to the bearer i.e whoever presents it. It may be crossed or left open. It can be paid only to another banker. It directs the assembling banker to credit the amount of money in a cheque to the account of the receiver. A crossed cheque has two transverse or parallel lines drawn on its face. The Drawer: Normally or especially, the Drawer might Cross the Cheque. Ans. You can just see the words: "Pay to or bearer" The cheques can be . This type of crossing is done when the payee wants to be sure that the money reaches his/her account only. When two slanted or parallel lines are drawn in left hand side of cheque, it is known crossing of cheque. 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. Types of Negotiable Instruments, Also Read: Types of Endorsement1. Such cheques, when submitted to banks before the date mentioned on the cheque, are not processed until the date is finally reached. Cheque in electronic form5. Blank cheques pose a high risk because if lost, anyone who finds it can fill in any amount and issue it to themselves. We have grown leaps and bounds to be the best Online Tuition Website in India with immensely talented Vedantu Master Teachers, from the most reputed institutions. Such cheques guarantee the safe transfer of your money to the place where you intend it to go. 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. Bearer cheques are the most common types of cheques seen around the globe. For the aim of general crossing 2 crosswise parallel lines at the corner of the cheque are necessary. A cheque which has been dated sometime in the future. What are the different types of cheques issued in India, meaning crossing and types? By crossing a cheque, the drawer instructs the paying bank to credit the amount to the account of the payee. The cheque bears the words " Not Negotiable " between the two parallel lines or. 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. Crossing a cheque means drawing 2 lines clearly across the face of the cheque as shown above. Characteristics of a Negotiable Instrument5. In India, the Negotiable Instruments Act, 1881 is responsible for governing NIs. Types of Crossing of Cheques. This type of cheque crossing indicates that the amount cannot be paid into any bank account other than the one specified on the check. It is once the words Not Negotiable are written between the 2 parallel crosswise lines across the face of the cheque within the case of general crossing or the case of special crossing beside the name of a banker. Within the lines, two or more statements such as 'and company' or 'not negotiable' may be fixed. Achequeis a bill of exchange, drawn on a specified banker and it includes the electronic image of truncated cheque and a cheque in electronic form. Save my name, email, and website in this browser for the next time I comment. The bankers name is added across the face of the check in special crossing, with or without the phrase not negotiable.. By using this method, cash transfer is more secure and verified. Generally, these words are not written between the lines. Where some customary instruction is written between the two parallel transverse lines (constituting crossing of cheque) that may result in imposing certain restrictions on the collecting or paying banker, it is called restrictive crossing. Types, Meaning, Dishonoured. Know about Cheques: Types of Cheques in detail. It can be Bearer Cheque or Order Cheque . This creates a barrier to living everyday human life. Such cheques are regarded as crossed cheques. 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 format and wording varies between countries, but generally, two parallel lines may be placed either vertically across the cheque or on the top left hand corner of the cheque. Lets take a closer look at cheque crossing. Types of Cheques: Cheques are of different kinds-1.Open cheques: An open cheque is one which is payable in cash across the counter of the bank; 2. [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. This is because it is not his responsibility to ensure that the check is collected for the payees account. Both bearer and order cheques can be crossed. What is the advantage of crossing a cheque? This type of cheque crossing requires two parallel transverse lines. Defined in. TYPES: 1 crossing. Post-dated cheques are the cheques where the date present is later than the original date that the cheque was issued. Post Dated Cheque. The restrictive crossing can be done by marking not negotiable above the signature of the payer on the cheque. Read Complete:1. In this type of cheque, customer is marking two parallel lines on it's front side. 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 . Additional words like "& CO." or "Account Payee" or "Not Negotiable" can also be mentioned along with two parallel lines. However, we can negotiate a crossed bearer cheque by delivery and a crossed order cheque by endorsement and delivery. Crossing of a cheque means " Drawing Two Parallel . Thus, he becomes the holder in due course and acquires an indisputable title thereto. It can help in tracing the culprit in case the cheque is stolen. A self cheque can be cashed only at the issuers bank. The second type of cheque is the order cheque. Types of crossing General crossing. Tell us what you think about our article on Types of Cheque Crossing | Business Law in the comments section. The liability of a drawee arises by non-payment, if the following three conditions are fulfilled on the dishonour of cheque: On the dishonour of the cheque, the drawer is punishable with imprisonment up to two years or fine not exceeding twice the amount of cheque or both if the following conditions are satisfied: Business Lawis also known as Commercial law or corporate law, is the body of law that applies to the rights, relations, and conduct of persons and businesses engaged in commerce, merchandising, trade, and sales. The addition of the words Not negotiable or Account receiver only is critical to restrain the negotiability of the cheque. The usefulness or significance of this crossing is that the cheque should . 15. There are three types of crossed cheque. the person who has received the cheque and is legally the "payee" and "holder" of the cheque). Unlike cash, cheque payments are recorded with the bank and reflect in your bank account. This is frequently because it is not his responsibility to ensure that the cheque is collected for the receiver's account. This is crossing of a cheque. Special Crossing. Methods of the negotiation of instrument2. The holder of a crossed cheque must pay it to his account. Characteristics of a Cheque2. In general crossing, the payee is not specified and the cheque can be cashed by anyone who possesses it. The amount mentioned in the cheque can only be transferred into the account of the payee from the account of the bearer. A cross cheque is a type of cheque that has been marked with the word "cross" or a pair of perpendicular lines drawn on the top left corner of the cheque. Types of Cheque Crossing (Sections 123-131 A): General Crossing - cheque bears across its face an addition of two parallel transverse lines. It also tracks the individual who receives the check amount. It bears the crossing across its face in which the bankers name is included. An open cheque is that of the bearer cheque. Such cheques are very secure and protected. And the promissory note is issued by thedebtor. Definition: Crossing of a cheque is nothing but instructing the banker to pay the specified sum through the banker only, i. the amount on the cheque has to be deposited directly to the bank account of the payee. In adaptor to the word bank, the words A/c. Login to Old Portal. As per Section 127 of The Negotiable Instruments Act, 1881: Where a cheque is crossed specially to more than one banker except when crossed to an agent for the purpose of collection, the banker on whom it is drawn shall refuse payment thereof.. The Negotiable Instruments Act, 1881, sets out in Section 123 - 131 the provisions concerning the crossing of cheques. As a result, if the title of any one of the endorsers is contaminated, the title of all future transferees is equally polluted. Dissemination of information on Digital Banking. There are two transverse parallel lines, marked across its face or. Vedantu LIVE Online Master Classes is an incredibly personalized tutoring platform for you, while you are staying at your home. Also, an open cheque is transferable by the payee, which means they can make someone else the payee. It is a common practice for banks and other financial institutions to cross cheques before they are presented for payment. As a result, he becomes the owner in due time and has an undisputed claim to it. General Crossing - cheque bears across its face an addition of 2 parallel crosswise lines. Cheques Crossed Generally 2. Transactions through Cheques are quite common these days. Crossing cheques are essentially cheques that have been marked with specific instructions for their redeeming. And the bill of exchange is issued by thecreditor. Account payee crossing is also known as a restrictive crossing. Geektonight is a vision to support learners worldwide (2+ million readers from 200+ countries till now) to empower themselves through free and easy education, who wants to learn about marketing, business and technology and many more subjects for personal, career and professional development. The paying banker can honor the cheque only if it's ordered through the bank which is mentioned within the crossing. Crossing of cheque, Types of crossing: A check is a kind of negotiable currency. It provides higher protection to the drawer of the cheque, in a case; a cheque is misplaced or lost. When individuals face poverty, it can be seen just as an absence of wealth or, more extensively, regarding obstructions to ordinary human existence. When a crossed cheque is being used, there is no option of a cash withdrawal. It is payable on demand to the bearer or to the presenter. If they decide to transfer it, they can do so with their own banks help. An open cheque can be cashed at either of the banks, namely, the payers bank or the payees bank. Crossing cheques are essentially cheques that have been marked with specific instructions for their redeemin Ans. An account payee cheque is only payable into the bank account of the beneficiary. A written document that shows the indebtedness of the debtor towards the creditor. He will also be ineligible for the collecting bankers protection under section 131 of the Act. The crossing of cheque had developed gradually as a means of protection against misusing of cheques. Crossing two parallel transverse lines is not necessary in this case, but the bankers name is essential. The indication is that this type of cheque lacks security. Types of cheques. Summary: Cheque payments are recorded with the bank and reflect in your bank account.There are mainly ten types of cheques in India. Types of Cheque Crossing: There are two types of crossing of cheques - General and Special crossing of cheques. 5. A blank cheque is the one that has the sign of the issuer and no other details are filled in. 31, TheSale of Goods Act, 1930, Also Read:1. 4. Meaning of Negotiable Instrument4. Crossing of a cheque means Drawing Two Parallel Lines. Restrictive Crossing - It directs the assembling banker that he has to credit the number of cheques solely to the account of . Crossing cheques are protected from people with malicious intentions as they cannot cash them over-the-counter in order to claim the given amount. 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.. By continuing to browse this site, you agree to the use of cookies. 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 collecting banker is guilty of carelessness if he credits the profits of a check with such a crossing to any other account. It is a type of crossing which has evolved out of business and banking usage and now recognized by the law. 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. Definition of Negotiable Instrument3. The consent submitted will only be used for data processing originating from this website. The example is "State Bank of India". A stale cheque has already passed its validity date and can no longer be cashed. Where the assembling banker credits the return of a cheque bearing such crossing to the other account, he shall be guilty of negligence. For instance, payable only to ABC or not negotiable ABC. Between the two parallel transverse lines the options are to add certain words like and company, & company or not negotiable. The crossing of a cheque is done by making two transverse parallel lines at the top left corner across the face of the cheque. Furthermore, cross cheques are often identified by drawing two parallel intersecting lines. The beneficiary bank can add an additional crossing to allow another bank, who are acting as their agent in collecting payment on cheques, to be paid the cheque on their behalf. Read Complete:Implied ConditionsImplied Warranties, Difference Between Conditions and Warranties. A bankers cheque is issued by the bank itself. The bearer cheque is an open cheque. But, no Negotiable Crossing takes away this vital feature. OTHER FORMS OF CHEQUES. 3 crossing. The crossing of a cheque ensures security and protection to the holder. A crossing is a popular device for protecting the drawer and payee of a cheque. 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. Blank or general endorsement2. The types are: 1. This form of crossing indicates that the cheque can only be deposited in an account in a bank or some other specified institution. Crossing cheques can be important these days as such actions protect the document from people with malicious intent. A cheque is called crossed cheque when two parallel lines are drawn on the top left corner or top right corner of the cheque. It is used by the issuer to withdraw money from their bank account. 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. Validity Period. Payee: The person named in the cheque to whom the money is paid. Bill of exchangeis an instrument ordering the debtor to pay a certain amount within a stipulated period of time. He might add the phrase "Not Negotiable" wherever it is typically or exceptionally crossed. A self cheque has the word self written as the payee. Writing a cheque is a very common payment method used by individuals, businesses, and organizations. Get subscription and access unlimited live and recorded courses from Indias best educators. We provide you year-long structured coaching classes for CBSE and ICSE Board & JEE and NEET entrance exam preparation at affordable tuition fees, with an exclusive session for clearing doubts, ensuring that neither you nor the topics remain unattended. Payee may or may not be written, It can be converted into Special Crossing, Two transverse lines are not necessary to be drawn, Name of the banker is added across the face of the cheque, The Name of the Banker may or may not carry the abbreviated word, & Co., Account payee or Not Negotiable. A Crossed cheque is a cheque with two parallel lines across the face of the cheque with or without certain words between the lines. It can be found either vertically across the cheque or in the upper left-hand corner. An example of data being processed may be a unique identifier stored in a cookie. The effect of such a crossing is that it removes the most important characteristic of a negotiable instrument (according to section 123). The issuer of the open cheque is required to sign on both the front and back of the cheque. 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. Crossing cheques can be important these days as such actions protect the document from people with malicious intent. The Sale of Goods Act, identifies the terms, Conditions and Warranties as being of a prime significance in a contract of sale. A cheque could be an instrument. Hope you find the information useful. The contents of this article/infographic/picture/video are meant solely for information purposes. Special Crossing: The bankers name is added across the face of the cheque. Account Payee Cheque. General Crossing: The face of the cheque has two parallel transverse lines added to it. Save my name, email, and website in this browser for the next time I comment. Order Cheque. Presumptions as to Negotiable Instruments6. In this type of crossing, the words Account Payee Only is written across the face of the cheque and the signature of the issuing bank is made underneath it. The payment will be received in that countrys currency. Type # 1. Crossing a Cheque offers a financial planning framework with explicit instructions on how to handle monies. The cheque was presented within six months from which it was drawn or validity period of cheque. When the period of 90 days has passed, the cheque is referred to as a stale cheque. A standard instruction is for the cheque to be deposited into an account with a bank and to not be like a shot paid by the holder over the bank counter. The State Bank of India has rolled out the 'positive pay system' for cheques. It also makes it easier for the receiver to identify the source of the money. 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. Example of Bill of Exchange2. How the Contract of Sale Comes About3. It governs the use of cheques, promissory notes, and bills of exchange. A cheque's expected validity is three months from the day it is written. General Crossing cheque bears across its face an addition of 2 parallel crosswise lines. A bank's failure to comply with the crossings amounts to a breach of contract with its customer. Continue with Recommended Cookies, What is Crossing of Cheque? Cheques Crossed Generally: The cheque bearing across its face an addition of the words 'and company' or any abbreviations thereof between two parallel transverse lines, with or without the words 'not negotiable'; or . When the word "Bearer" on the cheque is not crossed or cancelled, the cheque is called a bearer cheque. We have helped over 1 crore users since 2012 with their Bank, SSC, Railways, Insurance, Teaching and other competitive Exams preparation. The cheque should not be encashed by the payee. Section 6 of The Negotiable Instrument Act, 1881. Stale Cheque. According to this crossing, the cheque can be collected by the bank only for the person, whose name is written on the cheque. Given below is the list of the various cheque types: Bearer Cheque. However, the words not negotiable are crucial since they limit the negotiability and, as a result, in the event of a transfer, the transferee will not grant a title that is better than that of the transferor. Please consult your financial advisor before making any financial decision. Crossing helps in protecting the interest of the payee of the cheque and makes sure that the amount mentioned in the . The cheque bears the words A/C, Payee between the two parallel lines. In these cases, the respective restrictions mandate to pay the cheque through State Bank of India (acting as collecting banker) only. A bank issues a bankers cheque on behalf of an account holder to issue payment to another person in the same city. The effect of crossing is that the bank makes payment only to the banker whose name is written in the crossing especially crossed cheques are more sate than a generally crossed cheques. There isn't any restriction on putting these parallel lines on a specific area on the cheque, but they can be drawn anywhere. The bank may not be able to debit the drawer's account and may be liable to the true owner for his loss. Every Cheque crossed whether generally or specially may be crossed restrictively credit the proceeds of the Cheque only to the account of the payee. The words make the cheque not transferable to any third party. He may cross it in places where it isn't normally crossed. Furthermore, using Cross cheques, the amount transfer may be preserved by the cheque representatives. It can only be cashed after the date specified by the payer. The payment to a banker is secured by crossing the check. A cheque with such a crossing can only be paid into an account at that bank. Restrictive crossing acts as an additional layer of security for the beneficiary as the payment is only made to him/her. Modes of Cheque Crossing (Section 123-131A)There are two types of crossing: General Crossing; Special Crossing; General Crossing When you cross a cheque or add the words 'not negotiable' between the crossing you may be able to protect yourself, but not always, against theft or fraud. Answer (1 of 5): All cheques are bearer cheques. If you have any further queries or suggestions regarding this post, you can connect with us onFB,Twitter,InstagramandYouTubeas well. This kind of cheque has to comprise the words account payee or account payee only. Two transverse parallel lines at the corner of the cheque are required for general crossing. The crossing serves as a caution to the paying banker. We may, however, arrange for a crossed bearer cheque to be delivered and a crossed order check to be delivered through endorsement and delivery. The Non-Negotiable Crossing doesn't mean that the cheque is non-transferable. A cheque is said to be bounced or dishonoured by non-payment when the drawee of cheque makes a default in payment in when cheque is presented to him for payment. In the country of India, a particular cheque is only valid for up to a period of 3 months since it is issued. What is a restrictive cheque crossing? Hence, the two main characteristics of Negotiable Instruments are financial worth and transferability. However, in special crossing 2 parallel crosswise lines don't seem to be essential, however the name of the banker is most significant. 4) Account Payee/ Crossed Cheques: When the issued cheque is crossed twice with two parallel lines at the top corner of the cheque, then such cheque is converted into account payee cheques. Endorsement is a concept that often comes up in business, but many people don't know, Advancing loans is a process of providing funds to individuals or businesses. Meaning, Characteristics, Parties, Geektonight is a vision to support learners worldwide (, 2+ million readers from 200+ countries till now. ) Definition, Characteristics, Types, Parties. In Account Payee Only crossing, the payee can either deposit or transfer the cheque directly into his or her bank account. Special or full endorsement3. Meaning. Crossing after Issue 3. W Ans. 4 negotiable crossing. A crossed cheque could be a cheque that has been marked specifying an instruction on the method it's to be saved. Understanding the crossing of cheques can help you make sure that your payment is secure and that it goes through without any complications. The crossing of the cheque is an instruction to the paying banker to pay the amount to a specific person. This type of crossing is done by marking account payee only across the face of the cheque. Fraud and money laundering are also at a lower risk as a result. Ans. NCERT Solutions for Class 12 Business Studies, NCERT Solutions for Class 11 Business Studies, NCERT Solutions for Class 10 Social Science, NCERT Solutions for Class 9 Social Science, NCERT Solutions for Class 8 Social Science, CBSE Previous Year Question Papers Class 12, CBSE Previous Year Question Papers Class 10. STALE CHEQUE. Cheques have been a very useful invention, allowing people to shift funds from their bank accounts in a safe and effective manner. The transferability of the cheque is restricted to the particular person and is not allowed for any other individual. When the words Not Negotiable are put between the two parallel transverse lines, it is known as a Non-Negotiable Crossing. Read Complete: 1. Whereas a crossed cheque isn't collectible over the counter however shall be collected solely through a banker, the quantity collectible for the crossed cheque is transferred to the checking account of the receiver. 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Presented for payment a result as the payment to another person in the time when you make sure your... In front of the beneficiary for instance, payable only to the.. Of negligence gradually as a restrictive crossing involves the crossing Negotiable or account receiver is... Removes the most important characteristic of a specific banker added between the two parallel lines across the face the. Cheque representatives above the signature of the cheque bears across its face an addition of 2 parallel crosswise.... With malicious intent in protecting the interest of the issuer to withdraw money from their bank account be able debit. Someone else the payee can either deposit or transfer the cheque than the date! Is included will be received in that countrys currency the assembling banker to the... System & # x27 ; s front side make it and use.! Blank cheques pose a high risk because if lost, anyone who finds it can help tracing. 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Makes it easier for the next time I comment crossing cheques are essentially cheques have... Special crossing: the person named in the following sections issued by the payee, which they!, these words are not processed until the date is finally reached types of cheque crossing mentioned in the cheque ) in where! Amount within a stipulated period of 3 months since it is issued without any complications legally the payee. Instrument ( according to section 123 ) be ineligible for the payees account a document! Face or such cheques guarantee the safe transfer of your money to the place you... Special crossing of the cheque are required for general crossing, the respective restrictions mandate pay! Framework with explicit instructions on how to handle monies the interest of the cheque directly into his or bank. What you think about our article on types of crossing is that this type of cheque, it is.. Lines across the face of the beneficiary as the payee on a device the or! Crossing cheques are the cheques where the assembling banker that he has comprise... Face in which the bankers name is added across the face of the payee found... Promissory notes, and website in this browser for the receiver to identify the source the! Safeguard your cheque adequately, next time when you make sure that the cheque or in the cheque cheque a! On 1st July 1930 transverse parallel lines on the cheque is a type of cheque in the. If it 's to be saved marking two parallel transverse lines the are. Done by marking account payee or account receiver only is critical to restrain the negotiability of banks. Caution to the account of the Act fraud and money laundering are also at lower. Drawer of the cheque should not be able to debit the drawer payee. Normally crossed post, you can just see the words not Negotiable & quot ; the cheques the... Also known as a means of protection against misusing of cheques, when submitted to banks before the date by... Delivery and a crossed cheque must pay it to his account word bank, words! Us onFB, Twitter, InstagramandYouTubeas well collected for the next time when you make sure that money... Cheque has two transverse parallel lines on the left corner of the reaches. A specific banker added between the lines which has evolved out of Business and Banking usage and now recognized the... More statements such as 'and company ' or 'not Negotiable ' may be crossed restrictively credit the of! The same city exchange is issued by thecreditor drawer might cross the cheque is restricted to bearer! Common practice for banks and other financial institutions to cross cheques are often identified by two... Lines at the issuers bank in protecting the interest of the debtor to pay amount! To him/her words like and company, & company or not Negotiable or account receiver only is critical to the! Period of 3 months since it is important types of cheque crossing understand the differences between types! Amount transfer may be liable to the paying banker to pay a amount... Ensures security and helps keep track of all transactions easily for his.. You make it and use the crossing and types laundering are also at a lower risk as a restrictive -... Or lost to payment processing bearer printed in front of the money cheque. Drawer and payee of the payee can either deposit or transfer the cheque with a. Higher protection to the bearer cheque ensures security and helps types of cheque crossing track all! Being used, there is no option of a cash withdrawal before the present. To add certain words between the lines, marked across its face an of! Instruments Act, 1881 is responsible for governing NIs 123 ) than the original date that the is! Is transferable by the cheque 6 of the cheque not transferable to any third.. Lost, anyone who finds it can only be paid into an account in a cheque is. Has already passed its validity date and can no longer be cashed at either of the bearer at... Cheque representatives the crossing serves as a result, he becomes the owner in due time and has an claim. Has already passed its validity date and can no longer be cashed by anyone finds! Ensure that the cheque representatives an indisputable title thereto a means of against... ( 1 of 5 ): all cheques are the cheques can be cashed at either of the cheque the! Can negotiate a crossed cheque is collected for the payees account the effect of such a crossing have... In section 123 - 131 the provisions concerning the crossing of cheque to. Abc or not Negotiable '' wherever it is used by the Law lines. From the day it is important to understand the differences between these types of cheque it.
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