What is the Crossing of Cheques?

What is a Cheque?

A cheque can be defined as a document that instructs the bank to pay a specific amount to the person whose name is written on the cheque. A cheque is a negotiable instrument governed by the Negotiable Instrument Act, of 1881 i.e. it promises its bearer a payment of the specified amount on furnishing the document to the banker....

How Many parties are there in a Cheque transaction?

There are a total of three parties in a transaction facilitated by a cheque which includes,...

Types of Cheques

There are two types of cheques available one is called Open cheques, and others are Crossed cheques....

What is the Crossing of Cheques?

Crossing is a unique feature associated with a cheque affecting to a certain extent the obligation of the paying banker. The crossing is like an instruction to the paying bank not to make payment on the bank counter rather payment shall be made through a bank account only so that no wrong person can take the payment to the said cheque. The crossing of a cheque is effected by drawing two parallel transverse lines with or without the words ‘and company’ or any abbreviation thereof. This ensures a level of security for the payer since it needs the funds to be handled with a collecting bank. Cheque writers can use crossed cheques to protect the amount transmitted from being cashed by an unauthorised person or stolen, as Crossed Cheques can only be paid through a bank account....

Types of Crossing of Cheques

1. General Crossing...

Who may cross a Cheque?

A cheque can be crossed by three parties:...

Crossing of Cheques – FAQs

What is Crossing of a Cheque?...