What is Crossing of Cheque ?
A agree is a negotiable instrument. During the procedure of circulation, a agree may live on lost, stolen or the signature of payee may live on done yesteryear another somebody for endorsing it. Under these circumstances the agree may larn into incorrect hands.
Crossing is a pop device for protecting the drawer as well as payee of a cheque. Both bearer as well as guild cheques tin give notice live on crossed. Crossing prevents fraud as well as incorrect payments. Crossing of a agree agency "Drawing Two Parallel Lines" across the expression upward of the cheque. Thus, crossing is necessary inward guild to convey safety. Crossed cheques must de presented through the depository fiscal establishment exclusively because they are non paid at the counter.
Different Types of Crossing ↓
1. General Crossing :-
Generally, cheques are crossed when
- There are 2 transverse parallel lines, marked across its expression upward or
- The agree bears an abbreviation "& Co. "between the 2 parallel lines or
- The agree bears the words "Not Negotiable" betwixt the 2 parallel lines or
- The agree bears the words "A/c. Payee" betwixt the 2 parallel lines.
Specimen of General Crossing ↓
2. Special or Restrictive Crossing :-
When a detail bank's refer is written inward betwixt the 2 parallel lines the agree is said to live on particularly crossed.
Specimen of Special or Restrictive Crossing ↓
In add-on to the discussion bank, the words "A/c. Payee Only", "Not Negotiable" may equally good live on written. The payment of such agree is non made unless the depository fiscal establishment named inward crossing is presenting the cheque. The lawsuit of particular crossing is that the depository fiscal establishment makes payment exclusively to the banker whose refer is written inward the crossing. Specially crossed cheques are to a greater extent than prophylactic than a by as well as large crossed cheques.
