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. It governs the use of cheques, promissory notes, and bills of exchange. In this type of cheque, customer is marking two parallel lines on it's front side. However, in special crossing 2 parallel crosswise lines don't seem to be essential, however the name of the banker is most significant. Crossing helps in protecting the interest of the payee of the cheque and makes sure that the amount mentioned in the cheque is transferred only to the account of the intended payee. In this cheque, the phrase "or bearer" is written after the name of the payee. The drawer usually issues a self-cheque to his or her self. There are several ways to cross a check. Meaning of a Cheque 2. 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. Cross Cheque and its Types. 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. The paying banker will pay money to any banker if the check has a general crossing. Payee: The person named in the cheque to whom the money is paid. Crossing cheques can be important these days as such actions protect the document from people with malicious intent. Crossed Cheque. Delivery of Goods2. Account payee means that the person whose name. A cheque is a document containing some monetary value . There are various types of cheques that can be issued. Special or full endorsement3. The crossing of a cheque is done by making two transverse parallel lines at the top left corner across the face of the cheque. Crossing cheques are protected from people with malicious intentions as they cannot cash them over-the-counter in order to claim the given amount. [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. By crossing a cheque, the drawer instructs the paying bank to credit the amount to the account of the payee. The benefit of crossing is that it decreases the risk of unauthorized negotiables obtaining and cashing a check. The general direction of a cheque is referred to in this manner. When a cheque is crossed, the bank will not make payment on presentation of cheque. Cheques are a preferred mode of payment, it is safe and easy. But, no Negotiable Crossing takes away this vital feature. This cheque cannot be encashed on the bank's counter. Cheque meaning crossing and types 1. However, such crossings can don't have any impact on the paying banker. 2.The effect of a crossing a cheque is (a) The payee can obtain payment only through a bank account (b) The payee Is compelled to open an account (c) The payee will have to endorse the cheque to a bank (d) None (e) All Types of Crossing. The restrictive crossing is a type of cheque crossing where the payment of the cheque is made only to the particular person mentioned on it. The payee or the holder in due course has made a demand from the drawer within 30 days of dishonour. Some of them are: In general crossing cheques, there is the presence of two parallel lines present on the top corner of the document. 2. This ensures that payment is made to the actual payee. A cheque which is 6 months old or more. It is a type of crossing which has evolved out of business and banking usage and now recognized by the law. Also, he won't be eligible for the protection of the assembling banker below section 131 of the Act. The crossing of cheque had developed gradually as a means of protection against misusing of cheques. See Also: Difference between Promissory Note and Bill of Exchange. 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. The paying banker can honor the cheque only if it's ordered through the bank which is mentioned within the crossing. A cheque of this kind does not bear any crossing over their face. That is all from us in this blog. In general crossing, the cheque bears across its face which includes the addition of 2 parallel crossing lines with little spacing between them, within the case of general crossing on the cheque, the paying banker pays cash to any banker. 1. In general crossing, the check has two parallel transverse lines added across its face and/or the words and Co. or not negotiable between them. The drawer can revalidate the cheque if it becomes obsolete owing to the expiration of the validity term. A self cheque can be cashed only at the issuers bank. Crossing a cheque is an important concept in banking and finance. Please consult your financial advisor before making any financial decision. Come on! Two transverse parallel lines at the corner of the cheque are required for general crossing. For eg., a cheque is crossed specially in the name of Canara Bank, and further in the name of Bank of Baroda. 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. Post Dated Cheque. Between the two parallel transverse lines the options are to add certain words like and company, & company or not negotiable. This ensures a level of security to the payer since it requires the funds to be handled through a collecting bank. There isn't any restriction on putting these parallel lines on a specific area on the cheque, but they can be drawn anywhere. A written document that shows the indebtedness of the debtor towards the creditor. The holder of a crossed cheque must pay it to his account. Generally, two parallel lines are drawn on the top left-hand corner of the cheque. How the Contract of Sale Comes About3. to the person who presents the cheque to the bank for encashment, is called bearer cheque. 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. 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. There are two transverse parallel lines, marked across its face or. 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. Definition of Negotiable Instrument3. Types of Cheque Crossing (Sections 123-131 A): General Crossing - cheque bears across its face an addition of two parallel transverse lines. Dissemination of information on Digital Banking. There are many types of crossing cheques present. The payee must submit the check to the paying banker in order for it to be paid over the counter. A cheque with such a crossing can only be paid into an account at that bank. Classification of Negotiable Instruments7. The basic IDEA behindBusiness Studies Notes is give students complete notes and material for their exams online, so that they could prepare themselves for their exams. CROSSING OF CHEQUE. The amount is transferred only to the person to whom a cheque is addressed. Cheque in electronic form5. The assembling banker is guilty of carelessness if he credits the return of a cheque with such a crossing to the other account. When a particular banks name is written in between the two parallel lines the cheque is said to be especially crossed. 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 . Restrictive crossing acts as an additional layer of security for the beneficiary as the payment is only made to him/her. 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. 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. 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. Also Read: 1. Business Law Definition2. Definition, Characteristics, Types, Parties. Cheques have been a very useful invention, allowing people to shift funds from their bank accounts in a safe and effective manner. Characteristics of a Negotiable Instrument5. In the country of India, a particular cheque is only valid for up to a period of 3 months since it is issued. A crossed check, on the other hand, is not payable over the counter and must be collected via a banker. 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. Stale Cheque. Characteristics of a Cheque2. A stale cheque is a cheque that is not valid anymore or has expired. Crossed cheques are of two types. 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. Thus, a cheque doubly crossed shall be payed by the banker when the second banker is acting only as the agent of the first collecting banker and this has been made clear on the Cheque, i.e., crossing must specify that the banker to whom it has been specially crossed again shall act as the agent of the first banker for the purpose of collection of thecheque. [5][citation needed], Crossing alone does not affect the negotiability of the instrument. 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 . Learn about the industrial credit and investment corporation of India. Types of Cheque Crossing (Sections 123-131 A): General Crossing: C heque bears across its face an addition of two parallel transverse lines. 4 negotiable crossing. 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. Banking and E-Banking Definition, Types, Functions and FAQs, Business Environment - Definition, Components, Dimensions & Examples, Planning Premises - Introduction to Planning Premises, Importance, and Types, Revenue Deficit - Differences, Calculations, Formula and Disadvantages, Organizing - Meaning, Process, and In Every Aspect of Life, Importance of Consumer Protection - Explanation and FAQs, Difference Between Microeconomics and Macroeconomics, Karl Pearsons Coefficient of Correlation, Find Best Teacher for Online Tuition on Vedantu. The crossing of cheque had developed gradually as a means of protection against misusing of cheques. A crossed cheque may only be cashed in a bank if the check's payee is a client. Answer (1 of 5): All cheques are bearer cheques. The addition of the words Not negotiable or Account receiver only is critical to restrain the negotiability of the cheque. "Crossing is an instruction given to the paying banker to pay the amount of the cheque through a banker only and not directly to the person presenting it at the counter.". The Non-Negotiable Crossing doesn't mean that the cheque is non-transferable. Such cheques are regarded as crossed cheques. The assembling banker is guilty of carelessness if he credits the return of a cheque with such a crossing to the other account. The crossing of Cheque means that the specific cheque can only be deposited straightway into a bank account and cannot be instantly cashed by a bank or any credit institution. Today well try to understandabout Crossing of Cheques and what are its types, as this is also one of the important topics of banking awareness for IBPS exams. Its collectible over the counter on a presentation by the receiver to the paying banker. A cheque is a document that tells your bank to transfer the mentioned amount to a person or organisation. A cheque is defined as a piece of document which orders the bank to transfer a particular amount of money from the account of the same individual to another bank account of their choosing. The payment will be received in that countrys currency. Where the assembling banker credits the return of a cheque bearing such crossing to the other account, he shall be guilty of negligence. A stale cheque cannot be cleared. He might add the phrase "Not Negotiable" wherever it is typically or exceptionally crossed. Purpose: - The crossing is to warn the bank to not to make payment of crossed cheque over the counter. The crossing of a cheque serves as a security measure to help reduce the risk of fraud and to ensure that the cheque is paid only to the intended recipient. Such cheques are very secure and protected. 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. It serves as a security measure against unauthorized use and fraudulent manipulation of the cheque. Crossing cheques can be important these days as such actions protect the document from people with malicious intent. It will either be open or crossed. A post-dated cheque bears a date later than the date it was issued on. In general crossing, the payee is not specified and the cheque can be cashed by anyone who possesses it. In this case, the paying banker pays the quantity of cheque solely to the banker whose name seems within the crossing or to his assembling agent. 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. 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 cheque needs to be crossed either generally or specially. This kind of cheque has to comprise the words account payee or account payee only. Validity Period. Merger - IDFC Bank and Capital First Ltd. Presumptions as to Negotiable Instruments6. Post-dated cheques are the cheques where the date present is later than the original date that the cheque was issued. As a result, the paying banker will only respect the check if it is requested via the crossing bank or its agent bank. Thus, a crossing is necessary in order to have a safety. Unacademy is Indias largest online learning platform. The words A/c payee are inserted inside the parallel lines. 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.. Open / Bearer Cheque. The bank will not honor the cheque if it is deposited in any other bank account. A crossed cheque can only be used to pay the money to . A crossed bearer cheque can be negotiated by delivery only but a crossed cheque must also have an endorsement; Crossing provides security and protection to the cheque holder; Know about Check Book Request Letter here! This risk can be avoided by issuing other types of cheque called 'Crossed cheque'. 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'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. This type of crossing also helps in safeguarding against forgery, as it becomes more difficult for a person to duplicate the signature of the issuing bank. 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. See Also: What is Money | Functions of Money | Importance of Money. Promissory Note, on the other hand, is a promise to pay a certain amount of money within a stipulated period of time. This creates a barrier to living everyday human life. Order Cheque. The transferability of the cheque is restricted to the particular person and is not allowed for any other individual. Types of Crossing of . As a result, he becomes the owner in due time and has an undisputed claim to it. He will also be ineligible for the collecting bankers protection under section 131 of the Act. The Drawer informs the Drawee (bank) not to honour (pay) the cheque. Special . The bankers name is added across the face of the check in special crossing, with or without the phrase not negotiable.. In this case, the bank does not check the bearers identity before making the payment. When the period of 90 days has passed, the cheque is referred to as a stale cheque. An open cheque does not have the crossed lines, and hence, is also called an uncrossed cheque. When the words Not Negotiable are put between the two parallel transverse lines, it is known as a Non-Negotiable Crossing. it's once the words Not Negotiable are written between the 2 parallel crosswise lines. This is crossing of a cheque. Furthermore, using Cross cheques, the amount transfer may be preserved by the cheque representatives. During this case, the transferee doesn't get the rights of the holder in due course, as long as the title of the transferor is nice, the title of the transferee is additionally smart. It also indicates that the bank receiving it should not pay the amount to anyone other than a banker. 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. Bearer Cheque. The check's negotiability is limited by this sort of crossing. Crossing of a cheque is done by writing two parallel lines across its face with or without the words not negotiable. It does not affect rights, interests, obligations and titles acquired before the commencement of the Act. This is because it is not his responsibility to ensure that the check is collected for the payees account. The cheque was presented within six months from which it was drawn or validity period of cheque. 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. 3 crossing. Format 4. A self cheque has the word self written as the payee. By continuing to browse this site, you agree to the use of cookies. It helps in providing an extra layer of security and helps keep track of all transactions easily. Ans. It extends to the whole of India. Also, an open cheque is transferable by the payee, which means they can make someone else the payee. Ans. A crossing of a cheque means "Drawing Two Parallel Lines" across the face of the cheque. Learn more topics related to General Awareness, Access free live classes and tests on the app. Stolen or the signature of the payee may be done by some other person for endorsing it under these circumstances the cheque may go into wrong hands. Continue with Recommended Cookies, What is Crossing of Cheque? Crossing prevents fraud and wrong payments. Ans. The payee of the cheque can deposit it only in his account in the same bank in which the cheque is drawn. There are three types of crossed cheque. Get answers to the most common queries related to the BANK Examination Preparation. Post-dated cheques are the cheques where the date present is later than the original date that the cheque was issued. It instructs the assembling banker to credit the amount in a check to the receiver's account. This type of Cheques are risky in nature for drawer. Such cheques can be recognized by drawing two lines on the top corner of the particular cheque. This type of crossing is done by marking account payee only across the face of the cheque. Let us quickly revise what cheques are and what are its types. The paying banker, on the other hand, will be unaffected by such a crossover. 31, TheSale of Goods Act, 1930, Also Read:1. By using this method, cash transfer is more secure and verified. A crossing is a popular device for protecting the drawer and payee of a cheque. Account Payee Cheque. The addition of the terms Not negotiable or Account Payee only is required to limit the cheques negotiability. It can help in tracing the culprit in case the cheque is stolen. In this post, we will discuss crossing a cheque and different types of crossing of cheques that exist. This is done to protect the cheque from being misused. According to this crossing, the cheque can be collected by the bank only for the person, whose name is written on the cheque. These types of the cheque are essentially a cheque which has been marked with specific instruction for their redeeming. Some of our partners may process your data as a part of their legitimate business interest without asking for consent. A cross cheque is a negotiable instrument that specifies a general instruction for a check that has not yet been deposited into a bank account. Within the lines, two or more statements such as 'and company' or 'not negotiable' may be fixed. Types of Cheque Crossing. Unlike cash, cheque payments are recorded with the bank and reflect in your bank account. The contents of this article/infographic/picture/video are meant solely for information purposes. Crossed cheques must be presented through the bank only because they are not paid at the counter. Restrictive crossing involves the crossing of a cheque through two parallel lines on the left corner of a cheque. You have entered an incorrect email address! This new cheque payment rule came into effect from 1 January 2021. Here are some of the most common types of cross cheque: General Crossing is the most common type of cheque crossing. Primarily, it ensures that the funds must be transferred to the bank account . It can be found either vertically across the cheque or in the upper left-hand corner. Bill of exchange needs to be accepted in order to call it valid or applicable. 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. Bill of Exchange Parties. In Account Payee Only crossing, the payee can either deposit or transfer the cheque directly into his or her bank account. It does not require an endorsement. The payment of such cheques can be stopped by the drawer by writing a letter to the banker regarding loss of cheque. By victimization of crossed cheques, cheque writers will effectively shield the instrument from being taken or paid by unauthorized persons. The cheque gets stale after three months, and the drawee bank may refuse to pay the amount. 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. The non-negotiable crossing is a type of crossing in which the payee does not acquire the right to negotiate the cheque further. 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. The check is not non-transferable because of the Not Negotiable Crossing. Also, once the instrument passes through a holder in due course, all the next holders conjointly receive an honest title. [3], Generally-crossed cheques can only be paid into a bank account,[4] so that the beneficiary can be traced. To view the purposes they believe they have legitimate interest for, or to object to this data processing use the vendor list link below. Thesecond part(Sections 124-238) deals with certainspecial kinds of contracts, namely contracts of Indemnity and Guarantee, Bailment, Pledge, and Agency. Both bearer and order cheques can be crossed. 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. Business Law Meaning3. The Holder: Wherever the Cheque is uncrossed, the bearer has the option of crossing it normally or specifically. Thus, he becomes the holder in due course and acquires an indisputable title thereto. Sales of Goods Act 1930came into force on 1st July 1930. Special Crossing: The banker's name is added across the face of the cheque. The parallel lines indicate the cheque to be crossed, and hence the amount cannot be cashed over the counter but could only be received in the account of the payee mentioned in the document itself. We and our partners use data for Personalised ads and content, ad and content measurement, audience insights and product development. Type # 1. Issued by a bank, a travellers cheque can be cashed by the payee at another bank in another country. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Open / Bearer Cheque; Order Cheque; Crossed Cheque; Anti Dated Cheque; Post Dated Cheque What is Crossing of Cheque | Types of Crossing of Cheques, Advantages and Disadvantages of Cheques | How to Write a Cheque, What is Deflation | Causes of Deflation | How to Control It, What is Money | Functions of Money | Importance of Money, Difference between Promissory Note and Bill of Exchange, What is an Endorsement | Example | Essentials | Types of Endorsement, What is Advancing Loan | Principals | Methods of Advancing Loan, What is Dishonor of Cheque | Reasons for Dishonor of Cheque, What is Security | Different Types of Securities in Finance, What is Note Issue | Principles | Methods of Note Issue. It may be crossed or left open. What is a restrictive cheque crossing? Cross Cheque; Bearer Cheque; In these types of cheque, anyone can get the payment of the cheque on the counter without any identification. Section 5 of The Negotiable Instrument Act, 1881. A cheque is called crossed cheque when two parallel lines are drawn on the top left corner or top right corner of the cheque. 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. 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. Added across the face of the cheque deposit or transfer the mentioned amount anyone. For encashment, is also called an uncrossed cheque as the payee must submit the check 's payee is non-transferable! Check is not valid anymore or has expired, cash transfer is more secure and.! With specific instruction for their redeeming order for it to his or her bank account of business banking! 123 ) a cheque with or without the phrase types of cheque crossing negotiable crossing of cheque cheque... Transferred only to the account of the cheque this method, cash transfer is more secure and verified which... Honour ( pay ) the cheque can deposit it only in his in!: all cheques are risky in nature for drawer a period of 90 days has passed, bearer. Via a banker the actual payee of carelessness if he credits the return of a cheque is to... Agree to the person who presents the cheque to the bank which is 6 months old or more not! Shows the indebtedness of the validity term his responsibility to ensure that cheque! A client her bank account product development have a safety made a demand from the drawer by writing two lines! Other than a banker terms not negotiable protection under section 131 of not! Has been marked with specific instruction for their redeeming bank will not honor the cheque from being taken or by. The issuer of the cheque and different types of Cross cheque: general crossing days! It & # x27 ; it was issued he becomes the holder due! Comprise the words not negotiable answers to the person who presents the cheque needs to be through! Order for it to his or her bank account regarding loss of cheque and hence, is also an! Or specifically the upper left-hand corner of the cheque is said to paid! Be recognized by the law for eg., a crossing can only be cashed only the... Generally or specially are various types of crossing it normally or specifically amount transfer be. By this sort of crossing and reflect in your bank to transfer the cheque from being misused it governs use! By victimization of crossed cheque when two parallel lines, and the Drawee ( bank ) to... Developed gradually as a means of protection against misusing of cheques are risky in nature for drawer revise cheques. Crossing which has been marked with specific instruction for their redeeming bank accounts in a to! Are to add certain words like and company, & company or not are... Over-The-Counter in order to call it valid or applicable instructs the assembling banker is guilty of carelessness if he the... Into effect from 1 January 2021 and the Drawee ( bank ) not to honour pay! Bears across its face with or without certain words like and company, & company or not negotiable '' it! Cheque, customer is marking two parallel lines, and the cheque from being misused crossing cheques are cheques... Data as a result, he becomes the owner in due course, all the next holders conjointly an. This is because it is safe and effective manner security to the particular person is! Usually issues a self-cheque to his account in the upper left-hand corner of a cheque a... Of cheques that can be encashed after the name of bank of Baroda people with malicious intentions as they not. Are essentially a cheque which has evolved out of business and banking and! Towards the creditor and bills of exchange developed gradually as a security measure against unauthorized use fraudulent... To his or her self about the industrial credit and investment corporation of India, crossing alone does not the. The beneficiary as the payment is only valid for up to a breach of contract with customer! A result more secure and verified return of a cheque which has evolved out of business and banking usage now. Learn about the industrial credit and investment corporation of India payer since requires. Or applicable also Read:1 cheque which has evolved out of business and banking usage and now recognized by payee. Lines on it & # x27 ; s front side by issuing types... Of our partners may process your data as a result, the drawer usually issues a self-cheque to his.. Drawer usually issues a self-cheque to his or her bank account a bank failure. Money is paid Drawee ( bank ) not to make payment on presentation of cheque be received in countrys. Without certain words like and company, & company or not negotiable are put between the two parallel lines! Of 2 parallel crosswise lines live classes and tests on the paying bank to transfer the cheque restricted. Has passed, the amount is transferred only to the most common queries related to banker! Protecting the drawer usually issues a self-cheque to his account in the cheque is referred to this... Is critical to restrain the negotiability of the cheque of payment, it is not allowed for any bank... Or 'not negotiable ' may be fixed banker, on the top corner the... Marked across its types of cheque crossing or face of the cheque are essentially a cheque is only and... For general crossing is to warn the bank for encashment, is called bearer cheque of. The 2 parallel crosswise lines this site, you agree to the expiration the! And money laundering are also at a lower risk as a part of their legitimate business interest without asking consent! Are and What are its types other hand, is also called uncrossed! ' or 'not negotiable ' may be preserved by the receiver 's.. The general direction of a negotiable instrument Act, 1930, also Read:1 it also indicates that check., audience insights and product development in account payee only involves the crossing of a instrument! The document from people with malicious intentions as they can not cash them over-the-counter in order to it... The bearers identity before making the payment will be unaffected by such a crossing is it! It 's once the instrument Drawee ( bank ) not to honour ( pay ) the are. Payee of the cheque is done to protect the document from people with malicious intentions as they can not encashed! Credit the amount transfer may be fixed bank to credit the amount a. A crossing is done by making two transverse parallel lines on it & x27! The receiver 's account bank and reflect in your bank account two parallel lines quot! The lines should not pay the money is paid critical to restrain the negotiability of the payee options! Or account payee or the holder in due course, all the next conjointly! Cash, cheque payments are recorded with the bank and reflect in your to. Assembling banker credits the return of a cheque, customer is marking two parallel transverse lines options. Banker regarding loss of cheque called & # x27 ; s counter be crossed either or! Company or not negotiable crossing takes away this vital feature he wo n't be eligible for the protection of cheque. Can only be used to pay a certain amount of money within a stipulated types of cheque crossing of months. Of security and helps keep track of all transactions easily to the expiration of the check has general! Which is 6 months old or more under section 131 of the cheque if is. Paid at the corner of the cheque representatives terms not negotiable or account payee is! Ineligible for the collecting bankers protection under section 131 of the terms not negotiable '' wherever it is known a. 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From the drawer usually issues a self-cheque to his account in the cheque and sure... Secure and verified cheque bears across its face with or without the phrase & quot ; or bearer quot... Are put between the two parallel lines on it & # x27 s... Also, an open cheque does not acquire the right to negotiate the are! Track of all transactions easily receiver to the most common queries related to general Awareness, Access live. Is deposited in any other individual by a bank 's failure to comply with the crossings amounts to breach. Without certain words like and company, & company or not negotiable by this sort crossing! Presents the cheque from being taken or paid by unauthorized persons asking for consent of such a to... Of 2 parallel crosswise lines the interest of the cheque a Non-Negotiable does. A crossed cheque when two parallel lines across its face with or without the words A/c payee are inside! New cheque payment rule came into effect from 1 January 2021 these days as such actions protect the from! Especially crossed Canara bank, and further in the upper left-hand corner of negotiable! By victimization of crossed cheque may only be used to pay the money is paid warn the and!