crossed cheques, the amount of such cheques cannot be collected over the Crossing cheques can be important these days as such actions protect the document from people with malicious intent. our bootcamp so far, Weekly Competition Week 1 December 2019, Weekly Competition Week 2 December 2019, Weekly Competition Week 3 December 2019, Weekly Competition Week 4 December 2019, Weekly Competition Week 1 November 2019, Weekly Competition Week 2 November 2019, Weekly Competition Week 3 November 2019, Weekly Competition Week 4 November 2019, Weekly Competition Week 2 October 2019, Weekly Competition Week 3 October 2019, Weekly Competition Week 4 October 2019, Weekly Competition Week 3 September 2019, Weekly Competition Week 4 September 2019, Duties of a paying banker as to crossed cheques, Sec. Poverty is the hardship of food, shelter, wealth, and clothing. [3], Generally-crossed cheques can only be paid into a bank account,[4] so that the beneficiary can be traced. Get all the important information related to the Bank Exam including the process of application, important calendar dates, eligibility criteria, exam centers etc. Such an endorser gets the following rights: Payment can only be made through the bank of the crossing. He will not be liable to the subsequent holder if the specified event does not take place to the instrument even before the particular event takes place. iii. Crossed cheques must be presented through the bank only because they are not paid at the counter. Bankers cheques are only valid for three months, however, post their validity period they can be revalidated if certain conditions are fulfilled. Please consult your financial advisor before making any financial decision. Study this topic properly as it is a very common topic given in the banking exams. Drawee: The party on whom the cheque is written, i.e., your Bank. Although the non- negotiable crossing does not result in the cheque becoming non- transferable, it still loses much of the negotiability of the cheques. Hence, it is not instantly encashed by the holder presenting the cheque at the bank counter. Drawing of two parallel transverse lines is not essential. Therefore, it is safer than generally crossed cheques. When the payee or endorser specifies the person to whom or to whose order the instrument is to be paid, the endorsement is called special endorsement or endorsement in full. The endorsee acquires a right to negotiate the instrument further to anyone he likes. Here are some of the most common types of cross cheque: General Crossing Not Negotiable Crossing Special Crossing Restrictive Crossing Account Payee Only Crossing General Crossing General Crossing is the most common type of cheque crossing. c) Features of Special Crossing: Your email address will not be published. the endorsee then becomes the payee of the instrument. In case of a special crossing, a cheque must not be crossed by drawing two parallel lines. Crossing cheques are essentially cheques that have been marked with specific instructions for their redeeming. If you have any further queries or suggestions regarding this post, you can connect with us on, Latest Pattern SSC CGL Tier 2 Mock Test Attempt Now, Latest Pattern SSC CHSL Tier 1 & Tier 2 Mock Tests Attempt Now, Must Know Age Problems for Bank Exams | RBI Grade B | IBPS PO | Indian Bank PO, What You Must Know About Coding Decoding | RBI Grade B | IBPS PO, SSC CGL 2023 Age Reckoning Issue, Complete Information. They are: 1. Special Crossing: The bankers name is added across the face of the cheque. bearer cheque as it is transferred without endorsement. It becomes useful when you are heading on a foreign trip and do not wish to carry too much cash. WebCrossing of cheques These types of the cheque are essentially a cheque which has been marked with specific instruction for their redeeming. by any unauthorized person. Copyright 2016, All Rights Reserved. Post-dated cheques are the cheques where the date present is later than the original date that the cheque was issued. In post-dated cheques, the date present is later than the original date that the cheque was issued. Hence, it is not instantly encashed by the holder presenting the cheque at the bank counter. 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. Merger - IDFC Bank and Capital First Ltd. To know more about applying for new products, you can reach out to IDFC FIRST Bank Customer Service on 1800 10 888. What Is A Cryptocurrency Hardware Wallet? The bank need not request the authorisation of the issuer to make the payment of this cheque. c) The specified person i.e. WebAn open cheque is basically an uncrossed cheque. Ashish Kumar is a SEO content writing enthusiast and an avid blogger who closely follows the latest financial trends. 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. In General Crossing paying banker to honor the cheque from any bank A/C. Copyright 2023 IDFC FIRST Bank Ltd. All Rights Reserved. WebA crossing of a cheque means Drawing Two Parallel Lines across the face of the cheque. 2. This essentially means that the individual who is carrying the bearer cheque to the bank has all the authority to encash it at the same institution. 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. Types of Cheque Crossing General Crossing cheque bears across its face an addition of 2 parallel crosswise lines. These risks can be avoided by giving the paying banker a clear direction about the person to whom the cheque is to be paid by specifying certain words on the cheque itself. (A) OPEN CHEQUE - It is an uncrossed cheque which is payable at counter of the bank. When a well established customer attaches such condition the banker should see to the fulfillment of the condition before making payment just to satisfy the customer. Such cheque runs great risk in the course of circulation because once a wrong person takes away the payment of an open cheque it is difficult to trace him Know about Cheques: Types of Cheques in detail. The contents of this article/infographic/picture/video are meant solely for information purposes. Thus, a crossing is necessary in order to have a safety. If the cheque is written between the two parallel lines, the words Not Negotiable. [citation needed]. Similarly, if the paying banker fails to make the payment in accordance with the provisions of. The cheque which is payable to the bearer or Crossed cheques. 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, Personal Loan: A guide for salaried individuals, 4 Tips for Successful Personal Loan Repayment, Enjoy monthly interest pay-outs on your IDFC FIRST Bank Savings Account, What is PPF Account - PPF Meaning, Features, Benefits, Most Important Terms and Conditions (MITC), Advisory on Frauds through Fake Investments Schemes. A cheque is a document that tells your bank to transfer the mentioned amount to a person or organisation. It is used by the issuer to withdraw money from their bank account. d) Such cheque runs great risk in the course of circulation because once a wrong person takes away the

The drawer can strike off the word bearer and can write the word order to 1. 1. The risk is more in case of bearer Inclusion of the name of a banker is essential. Bearer cheques are the most common types of cheques seen around the globe. The cheque thereafter becomes an open cheque. This cheque is transferable from the original payee (the original recipient of the payment) to another payee too. A per section 123 of N. I. Learn about the industrial credit and investment corporation of India. When the period of 90 days has passed, the cheque is referred to as a stale cheque. ICICI provides financial services and promotes economic development and growth. more delivery of cheque. This cheque can be encashed at any bank, and the payment can be made to the person bearing the cheque. There are mainly ten types of cheques in India that you should know about. Prof. Evneet's COMMERCE CLASSES. collect the amount of the cheque. When a crossed cheque is being used, there is no option of a cash withdrawal. Your email address will not be published. the degree of risk is less in case of crossed cheque as it cannot be encashed money to the specified person only by transferring the money to his account and Restrictive crossing. characteristic, cheques can be classified into two main groups. Save my name, email, and website in this browser for the next time I comment. Crossing cheques are protected from people with malicious intentions as they cannot cash them over-the-counter in order to claim the given amount. TYPES OF CHEQUES. Such cheques can be recognized by drawing two lines on the top corner of the particular cheque. WebCrossing of cheques These types of the cheque are essentially a cheque which has been marked with specific instruction for their redeeming. 65K views 10 months ago All Business Law Videos. i. But there is a record Non- Negotiable Crossing. Generally, cheques are crossed when The words 'not negotiable' can be added to a crossing. with or without the words and company or not negotiable or account payee The degree of risk is more in case of When the period of 90 days has passed, the cheque is referred to as a stale cheque, and such cheques cannot be encashed at a bank. When a cheque is crossed it in effects means a request more appropriately, an instruction by the client not to pay the cheque directly over the counter but to a banker only for crediting the payees account with the bank. But, order cheque is suitable for making big payments. The banker is under an obligation to pay the cheque according to the direction of the drawer conveyed through the crossing on the cheque. Complementary or Courtesy Title: An endorsement need not contain the complementary prefixes or suffixes and other courtesy title or professional designation. A cheque is written by an individual or an organisation for large payments. 15 of the NI Act is when the maker or holder of a negotiable instrument signs the same, otherwise than as such maker, for the purpose of negotiation on the back or face thereof or on a slip of paper annexed thereto or so signs for the same purpose a stamp paper intended to be completed as a negotiable instrument, he is said to endorse the same and is called the endorser. But, WebA crossed cheque the oblique or vertical lines in the centre form the crossing. General crossed cheques are paid in the account of payee, so that beneficiary can be easily traced. When the cheque comes with the words A / C. Payee between the two parallel transverse lines. For our discussion we may differentiate crossing into the following two types: a) Meaning:According to section-123 of NI Act, where a cheque bears across its face an addition of the words and company or any abbreviation thereof between two parallel transverse lines or two parallel transverse lines simply, either with or without the words not negotiable that addition shall be deemed a crossing & the cheque shall be deemed to be crossed generally. You can click on this link and join: Follow us onInstagramand subscribe to ourYouTubechannel for more amazing legal content. WebA crossing of a cheque means Drawing Two Parallel Lines across the face of the cheque. TYPES OF CHEQUES. The issuer needs to put his signature on both the front and back of the cheque. Thus usually the endorsement is on the back of the instrument though it may be even on the face of it. General Crossing: The face of the cheque has two parallel transverse lines added to it. 1. of movement of order cheque because it bears endorsement. CRPF Recruitment 2023, Central Govt To Recruit 1.30 Lakh Constables In CRPF, Static GK 2023 for SSC, Banking, UPSC, and Defence Exams, JPSC Recruitment 2023 Notification Out for 771 Vacancies, SSC CGL 2023 Notification Out for 7,500 Vacancies, Apply Online, UGC NET Answer Key 2023 Released, Direct Link to Download, Success Story of Pratibimb Tripathi | Cleared IBPS PO, AAI ATC, Success Story of Titas Mukhopadhyay | Cleared IBPS and RRB Clerk, Success Story of Manish Kumar | Cleared IBPS PO and IBPS Clerk, Success Story of Swastik kumar| Cleared IBPS PO, Success Story of Prabhu Dayal Sah | Cleared IBPS PO, Success Story of Prince Kumar| Cleared SSC CGL 2021, Best Telegram Group for Banking Aspirants. is less in case of order cheque as it is payable to a particular person. Ans. It means that the amount of the cheque issued can be either received by the payee or the bearer. But crossed cheque is payable only through a bank account. The name of the banker itself constitutes special crossing. Open cheque is used by the drawer to Act 1881, In this type of crossing the cheque must contain two transvers parallel line across the face of the cheque with or without word like & Co. Account Payee or Not Negotiable. endorsed the cheque. Different Types Of Crossing of Cheque General Crossing Special Crossing General Crossing v. Special Crossing Double Crossing Non-Negotiable Crossing A/C Payee Crossing Non-Negotiable A/C Payee Crossing Paying Banker Accountability Duties of a paying banker as to crossed cheques Duties of a Collecting Banker Introduction person named on the cheque or to his order. Post-dated cheques are the cheques where the date present is later than the original date that the cheque was i Ans. 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But, weba crossed cheque is a document that tells your bank to the... For a crossing paying banker to honor the cheque holder date that cheque... Cease to be negotiable further not paid at the counter of the cheque and not at any bank and. Negotiable further endorsee acquires a right to negotiate the instrument further to anyone he likes days has passed the... Following sections transferable, as anyone who is carrying it can receive the payment valid and can write word. The date mentioned on the face of the cheque or to the payer or the bearer or cheque. Negotiable ' can be made through the bank only because they are not at any time before it crossed! The issuer and no other details are filled in and promotes economic development and growth a period of months. Cheque has two parallel transverse lines added to it a right to negotiate instrument. Idfc FIRST bank Ltd. All rights Reserved, if the crossing the types of cheque crossing bearer on cheque... Crossed cheque Full time Blogger and Investor are meant solely for information purposes amount to a person... Ago All Business Law Videos be done in two ways: General crossing special crossing: the bankers may! Related to General Awareness, Access free live classes and tests on the cheque crossing... Was also the case in various matters like and do not wish to carry too much cash secure... Drawee: the bankers name may or may not carry the abbreviated word & Co trends! Bearers identity before making any financial decision easily traced case in various matters like bankers name is added across cheque... Not paid at the bank of the cheque comes with the word bearer and can write the word bearer the! Period they can not be crossed types of cheque crossing drawing two lines on the cheque is payable only through a collecting and... Common topic given in the centre form the crossing on the app have across... Proceeds of a cheque must not be published website in this case, the payers bank the. And Investor removes the most common types of cheques These types of cheques can be added a. Or crossed cheques the globe two parallel transverse lines added to a or! Bears endorsement needs to put his signature on both the front and back of the bearer... Seo content writing enthusiast and an avid Blogger who closely follows the financial..., a particular person professional designation not directly at the counter of the cheque two. Example, pay C if he returns from London behalf of an account holder to issue payment to another too... Drawee: the person writing the cheque is known as adrawer most common types of cheques in account. Which has been marked with specific instructions for their redeeming issue payment another... Enthusiast and an avid Blogger who closely follows the latest financial trends: crossing... And promotes economic development and growth email, and clothing in two ways: General paying... Br > < br > the drawer conveyed through the bank counter if certain conditions are fulfilled post-dated can... Is necessary in order to have a safety Kumar is a very common topic given in the centre form crossing. Common topic given in the cheques where the date mentioned on the cheque is not.. Whom the cheque types of cheque crossing to the wrong person - when a crossed cheque instructions for their redeeming English... As anyone who is carrying it can be issued passed, the payers bank or the payees.... Known as adrawer of special crossing: the face of the cheque such... Corporation of India, there are serious risks associated with payments to the direction of the,... There are serious risks associated with payments to the direction of the cheque or order is written by an or. Cease to be negotiable further much cash sign of the cheque is pre-crossed as printed the. Bank and reflect in your bank the particular cheque is transferable from the recipient... Months since it is payable only through a collecting banker and not directly at the bank,. The bearers identity before making the payment in accordance with the words not negotiable with a! The drawer conveyed through the bank does not check the bearers identity before making any financial decision after. Cheque except such cheques can be cashed at either of the instrument though it be. Only be paid into an account holder to issue payment to another person in the same city a safety Ltd.... Are here to make your investment journey simple by delivering content on financial topics in plain English, are.
But, the degree of risks Open cheque can be easily converted into Difference There are mainly ten types of cheques in India that you should know about. The ten types of cheques include: A bearer cheque is the type of cheque that allows the person bearing or carrying the cheque to the bank to receive the payment specified on the cheque. Hence, they are safer as compared to the open An endorsement which purports to transfer to the endorsee only a part of the amount payable, or which purports to transfer the instrument to two or more endorsees severally, is not valid. The cheque crossed generally does not cease to be negotiable further. c) Features of General Crossing: The word endorsement is said to have been derived from Latin en means upon and dorsum meaning the back. As an employee, knowing about one's EPF contribution and the interest earned, In simple words, cryptocurrency is decentralised money designed to be used over, Real-Time Gross Settlement (RTGS) is a popular electronic payment system that allows, Are you looking to improve the profitability and overall value of your. cheque. A crossed cheque is payable only through a collecting banker and not directly at the counter of the bank. If the holders have a good title he can transfer it with good title. 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. The paying banker is not authorized to send the proceeds of a crossed cheque to the payer or the cheque holder. WebCROSSING OF CHEQUES Crossing of cheque refers to instructing the banker to pay the specified sum through the banker only, i.e., the amount on the cheque has to be deposited directly to the bank account of the payee.

There are serious risks associated with payments to the wrong person. Bearer cheque is payable to the person An endorsement is a mode of negotiating a negotiable instrument. But what is a cheque? endorsement and the paying banker takes reasonable care before making the Crossing of a cheque means paying the His initials are not sufficient for this purpose. The word Order is written instead of the word Bearer on the cheque. They are: 1. b) A specimen of General Crossing: NPCI introduces UPI charges: Lets clear the confusion around it, EPF Calculator: EPF Interest Calculator & EPF Pension Calculator. We are here to make your investment journey simple by delivering content on financial topics in plain English. Itis a document that orders a bank to pay a specific amount of money from a persons account to the person in whose name the cheque has been issued. For example, pay C if he returns from London. a) Meaning: Section 123 A(i) When a cheque crossed generally bears across its face an addition of words Account Payee between the two parallel transverse lines constituting the general crossing, the cheque besides being crossed generally is said to be crossed account payee. Bearer cheque can be converted into It can be Bearer Cheque or Order Cheque . A post-dated cheque is only valid and can be encashed after the date mentioned on the cheque and not at any time before it. The or bearer mark on the cheque is struck off in order for cheques to ensure only the payee receives the amount specified in the cheque. WebA crossed cheque the oblique or vertical lines in the centre form the crossing. Such cheque runs great risk in the course of circulation because once a wrong person takes away the WebThe ten types of cheques include: 1. named on the cheque or to any bearer. The issuer needs to put his signature on both the front and back of the cheque. 125 of the Negotiable Instruments Act, the following persons are authorized to cross the cheque, apart from the drawer: A crossing of cheques is basically of 2 types: Section 123 of the Negotiable Instruments Act deals with the general crossing of cheque, In the following cases, a cheque is generally considered to be crossed: According tosection 124of the Negotiable instruments Act, Section 124 of The Negotiable Instruments Act, 1881defines Special Crossing as: Where a cheque bears across its face an addition of the name of a banker, either with or without the words not negotiable, that in addition shall be deemed a crossing, and the cheque shall be deemed to be crossed specially and to be crossed to that banker.. Such a crossing is called Special Double-crossing. WebThere are various types of cheques that can be issued. But crossed cheque cannot be converted into open cheque except Crossing cheques are essentially cheques that have been marked with specific instructions for their redeeming. withdraw money for himself. WebCrossing of Cheques | Types of Crossing of Cheque| Crossing and it's types | CA Inter. An open cheque can be cashed at either of the banks, namely, the payers bank or the payees bank. Hence, it protects both the parties. The holder of a cheque is authorized to cross a cheque, either in general or in particular if the cheque is not crossed. Specially Crossed Cheques can never be converted to General Crossing. If an instrument payable to order is transferred without endorsement, it is merely assigned and the holder thereof is not entitled to the rights of a holder in due course. Drawer: The person writing the cheque is known as adrawer. Types of Cheques (Open and Crossed) Based on this characteristic, cheques can be classified into two main groups. Open cheque may be a bearer or order crossed by drawing two parallel transverse lines across the face of the cheque Generally, cheques are crossed when It means that only the individual whose name is mentioned as the payee can receive the specified sum of money. Endorsement: As per section-127, 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. Hey Guys, Myself Kumar Nirmal Prasad, a Teacher turned Full time Blogger and Investor. This cheque is transferable from the original payee (the original recipient of the payment) to another payee too. Learn more topics related to General Awareness, Access free live classes and tests on the app. A blank cheque is the one that has the sign of the issuer and no other details are filled in. Crossing of Cheques can be done in two ways: General Crossing Special Crossing Kindly give your valuable feedback to improve this website. Such cheques, when submitted to banks before the date mentioned on the cheque, are not processed until the date is finally reached. f) Endorsement in blank or general endorsement. counter of the bank. Special Crossing: The bankers name is added across the face of the cheque. BEARER CHEQUE - When a cheque is payable to a person whose name appears on the cheque or to the bearer i.e. If two parallel transverse lines are marked across the cheque face. Here are some of the most common types of cross cheque: General Crossing Not Negotiable Crossing Special Crossing Restrictive Crossing Account Payee Only Crossing General Crossing General Crossing is the most common type of cheque crossing. A cheque with such a crossing can only be paid into an account at that bank. Such cheque can be transferred by 1. Method of restricting redemption of cheques, The examples and perspective in this article, Consequence of a bank not complying with the crossing, Learn how and when to remove this template message, http://www.legislation.gov.uk/ukpga/1992/32/section/4, http://www.chequeandcredit.co.uk/information-hub/faqs/crossed-cheques, https://en.wikipedia.org/w/index.php?title=Crossing_of_cheques&oldid=1140076227, Short description is different from Wikidata, Articles with limited geographic scope from March 2021, Articles needing cleanup from February 2011, Cleanup tagged articles without a reason field from February 2011, Wikipedia pages needing cleanup from February 2011, Wikipedia articles needing clarification from January 2023, Articles with unsourced statements from October 2016, Articles with unsourced statements from February 2022, Creative Commons Attribution-ShareAlike License 3.0, This page was last edited on 18 February 2023, at 08:40. WebAn open cheque is basically an uncrossed cheque. vii. Here are some of the most common types of cross cheque: General Crossing Not Negotiable Crossing Special Crossing Restrictive Crossing Account Payee Only Crossing General Crossing General Crossing is the most common type of cheque crossing. In such cheques, only the payee is allowed to receive the amount of money which is specified in the cheques. Restrictive crossing. Unlike cash, cheque payments are recorded with the bank and reflect in your bank account. Like most modern cheques in the UK, the cheque is pre-crossed as printed by the Bank. General crossed cheques are paid in the account of payee, so that beneficiary can be easily traced. Below given are different types of crossed cheque: General Crossing Under General Crossing, two transverse parallel lines are crossed across the face of the cheque and it bears an abbreviation & Co. between the two parallel lines.

Two transverse lines must not necessarily be drawn. It also makes a bearer cheque transferable, as anyone who is carrying it can receive the payment. A bank issues a bankers cheque on behalf of an account holder to issue payment to another person in the same city. In India, there are four types of crossing cheque. The endorsement may, by express words, restrict of exclude the right to negotiable or pay constitutes the endorsee an agent to endorse the instrument or to receive its contents for the endorser or for some other specified person.
IBPS PO Exam Dates 2022 (Out), Exam Schedule, RBI Grade B 2022 Exam Date Check Complete Exam Schedule, IBPS RRB Exam Date 2022 Check Prelims And Mains Exam Dates, IBPS PO 2022 Notification 6432 Vacancies, RBI Grade B Recruitment 2022 Check Phase II, Paper II & III Exam Dates. Difference of movement of order cheque because it bears endorsement. WebThere are various types of cheques that can be issued. In this case, the bank does not check the bearers identity before making the payment. 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. But crossed cheque is not a bearer or order cheque. But crossed cheque cannot be converted into open cheque except Such cheques are very secure and protected. Mumbai University B.Com - MCQs, Exam MCQs and Solved Papers, Auditing MCQs Multiple Choice Questions and Answers | Auditing MCQs For B.Com, CA, CS and CMA Exams, Management Accounting MCQs [Multiple Choice Questions and Answers], MCQ On Budget and Budgetary Control | Multiple Choice Questions and Answers, MCQ on Accounts of Holding Companies [Multiple Choice Questions and Answers], Corporate Accounting Multiple Choice Questions and Answers (MCQs) | Company Accounts MCQs. For example, Pay Ram or order is an order cheque, viii. 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. A crossed cheque is a cheque that has been marked specifying an instruction on Effect of Endorsement The crossing is constituted by drawing two transverse parallel lines on the face of the cheque. Two parallel transverse lines are not at all essential for a crossing. The meaning is very vast. While making such transactions, you might have come across the crossedcheques. The post-dated cheque can be valid after the mentioned date but not before it. 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. In the country of India, a particular cheque is only valid for up to a period of 3 months since it is issued. If the crossing on a cheque is cancelled, it is called opening of the crossing. withdraw money for his own use. (A) OPEN CHEQUE - It is an uncrossed cheque which is payable at counter of the bank. 5. 126 of the Negotiable Instrument Act, according to which: Where a cheque is crossed generally, the banker on whom it is drawn shall not pay it otherwise than to a banker and where a cheque is crossed specially, the banker on whom it is drawn shall not pay it otherwise than to the banker to whom it is crossed or his agent for collection.. They may accept such requests, only when the customer is ready to indemnify the banker for any loss which he may suffer in such cases. Special Crossing can never be converted to General Crossing. Two transverse parallel lines with the word And Company. The Court held that this was also the case in various matters like. In accordance with Sec. Unacademy is Indias largest online learning platform. Therefore, only a banker is allowed to receive a crossed cheque. ii. 65K views 10 months ago All Business Law Videos. iv. WebCrossing of Cheques | Types of Crossing of Cheque| Crossing and it's types | CA Inter. https://goo.gl/f7K6sg. A cheque is a document that tells your bank to transfer the mentioned amount to a person or organisation. An endorsement is restrictive when it prohibits further negotiation of a negotiable instrument. An order cheque cannot be transferred without f) W Ans. The effect of such a crossing is that it removes the most important characteristic of a negotiable instrument (according to section 123). There are various types of cheques and these are described in the following sections. The bankers name may or may not carry the abbreviated word & Co.. It can be Bearer Cheque or Order Cheque . is less in case of order cheque as it is payable to a particular person. Implications of Special Crossing The bank pays the banker with his name between the crossing lines. endorsed the cheque.

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