Types of Crossing of Cheques
1. General Crossing
When a cheque only possesses two parallel transverse lines without having anything written between them is called General Crossing, When a cheque possesses General Crossing the payee bank can only pay the said cheque to a banker. This protects the issuer of the cheque as the amount can only be credited to the bank account of either the named payee or an endorsee.
2. Special Crossing
Where the line of crossing has the name of a specific banker, then the payment can be obtained only by the said bank whose name is written between the crossing of lines. The drawing of two parallel lines is not necessary in the case of a specially crossed cheque. The object of special crossing is to direct the drawee banker to pay the cheque only if it is presented through the particular bank mentioned therein. This makes cheques safer.
3. Account Payee Crossing
When the cheque has “A/c Payee” written between the crossed lines and “A/c Payee” is added to a case of general or special crossing then it is Restrictive crossing. In this case, the collecting bank has to credit the amount of the cheque in the payee’s bank account only. It is also considered the safest form of crossing and is widely used in the market.
4. Not Negotiable Crossing
When “Not Negotiable” is written between the crossing lines, the cheque is said to be a non-negotiable cheque. The effect of this cheque is that the person accepting a “Not Negotiable” cheque shall not be allowed to pass the title of “Holder” to any other person i.e. a better title can’t be passed on to any other Party/Person. However, this crossing doesn’t affect the transferability of the cheque. A bank, therefore, should be extra careful in paying such cheques. The payment should be made only after he is satisfied that the person demanding payment is the person entitled to receive it.
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