KALYAN CITY LIFE

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Kalyan City is a fast emerging residential township in the Thane district of Maharashtra state, India. It is a central suburban town and resides 54 kms north-east of Mumbai. This blog regularly shares quality academic materials. Here we also document our unique experiences and vivid memories of life. Read our lucid informative articles to excel your understanding, knowledge and success.

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Articles published on Kalyan City Life blog are inspired from our work experience, field research, study of various good books and papers, seminars and consultations from subject scholars. Our unique collection of useful study notes is an outcome of a team effort and hard work of Gaurav Akrani, Prof. Mudit Katyani and Manoj Patil.

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Crossing of Cheque - Different Types of Check Crossing



square What is Crossing of Cheque ?


A cheque is a negotiable instrument. During the process of circulation, a cheque may be lost, stolen or the signature of payee may be done by some other person for endorsing it. Under these circumstances the cheque may go into wrong hands.

Crossing of Cheque


Crossing is a popular device for protecting the drawer and payee of a cheque. Both bearer and order cheques can be crossed. Crossing prevents fraud and wrong payments. Crossing of a cheque means "Drawing Two Parallel Lines" across the face of the cheque. Thus, crossing is necessary in order to have safety. Crossed cheques must de presented through the bank only because they are not paid at the counter.


square Different Types of Crossing ↓


1. General Crossing :-


Generally, cheques are crossed when

  1. There are two transverse parallel lines, marked across its face or
  2. The cheque bears an abbreviation "& Co. "between the two parallel lines or
  3. The cheque bears the words "Not Negotiable" between the two parallel lines or
  4. The cheque bears the words "A/c. Payee" between the two parallel lines.
A crossed cheque can be made bearer cheque by cancelling the crossing and writing that the crossing is cancelled and affixing the full signature of drawer.


Specimen of General Crossing ↓

Specimen of General Crossing a Cheque


2. Special or Restrictive Crossing :-


When a particular bank's name is written in between the two parallel lines the cheque is said to be specially crossed.


Specimen of Special or Restrictive Crossing ↓

Specimen of Special or Restrictive Crossing a Cheque

In addition to the word bank, the words "A/c. Payee Only", "Not Negotiable" may also be written. The payment of such cheque is not made unless the bank named in crossing is presenting the cheque. The effect of special crossing is that the bank makes payment only to the banker whose name is written in the crossing. Specially crossed cheques are more safe than a generally crossed cheques.





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1 Comment :

  1. rahil said...

    that was very use full stuff for students who are desire to know such a information.

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