Under the new rule, re-confirmation of key details will be needed for payments beyond 50,000. Hence, just in case of any trace within the title of any one of the endorsers, the title of all the next transferees conjointly becomes tainted. Business Law Meaning3. Also Read:1. 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. Aspirants can check the linked article for the latest government exams in India. The crossing of a cheque ensures security and protection to the holder. Essential Elements of a Valid Contract, It is the duty of the seller to deliver the goods and of the buyer to accept and pay for them, in accordance with the terms of the contract of sale. Sec. The Act deals with the sale but not with mortgage or pledge of the goods. 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. Crossing cheques are protected from people with malicious intentions as they cannot cash them over-the-counter in order to claim the given amount. As per the Non-Negotiable Act, 1881 section 130. In this scenario, the transferee does not get the holders rights in a timely manner. Crossed Cheque. A cheque is a negotiable instrument during the process of circulation, a cheque may be lost. 2. However, in some cases, if both the parties involved have mutual agreement and trust in each other, then Account Payee Only crossing can be relaxed for certain purposes. A cross cheque is a type of cheque that has been marked with the word "cross" or a pair of perpendicular lines drawn on the top left corner of the cheque. [3], Generally-crossed cheques can only be paid into a bank account,[4] so that the beneficiary can be traced. There are two transverse parallel lines, marked across its face or. This is done to protect the cheque from being misused. [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. This law defines these instruments and also deals with each type of them individually. Also Read: 1. Business Law Definition2. Wherever the Cheque is uncrossed, the bearer has the option of crossing it normally or specifically. In case of default by the drawee (i.e. Classification of Negotiable Instruments7. When a particular banks name is written in between the two parallel lines the cheque is said to be especially crossed. Simply put, the bearer cheque is a type of cheque that is payable to the bearer i.e whoever presents it. Such cheques, when submitted to banks before the date mentioned on the cheque, are not processed until the date is finally reached. A stale cheque is a cheque that is not valid anymore or has expired. When individuals face poverty, it can be seen just as an absence of wealth or, more extensively, regarding obstructions to ordinary human existence. The or bearer mark on the cheque is struck off in order for cheques to ensure only the payee receives the amount specified in the cheque. 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. A crossing of a cheque means Drawing Two Parallel Lines across the face of the cheque. It is a common practice for banks and other financial institutions to cross cheques before they are presented for payment. 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. 3 crossing. Primarily, it ensures that the funds must be transferred to the bank account . The cheque must contain the words 'account payee' or 'account payee only'. The payment of such cheques can be stopped by the drawer by writing a letter to the banker regarding loss of cheque. What are the types of crossing cheque? The cheque bears an abbreviation & Co. between the two parallel lines or. General Crossing Cheque. Types of Cheques: Cheques are of different kinds-1.Open cheques: An open cheque is one which is payable in cash across the counter of the bank; 2. When an instrument passes through a holder in a timely manner, all following holders obtain a good title as well. Learn about poverty, poverty law, its causes and consequences. MD & CEO Letter to Shareholders on the 1st Annual Report after Merger, MD & CEO Letter to Shareholders on the 2nd Annual Report after Merger, TYPES OF CHEQUE - WHAT ARE THE DIFFERENT TYPES OF CHEQUES, How to calculate interest rate in a Savings Account, Personal Loan: A guide for salaried individuals, Personal Loans vs Top-up Loans: How to choose the right product for your needs, How a pandemic has brought in a new age of doing business, Advisory on Frauds through Fake Investments Schemes. The addition of the words Not negotiable or Account receiver only is critical to restrain the negotiability of the cheque. Parties to a Cheque 3. A crossed cheque may only be cashed in a bank if the check's payee is a client. It can help in tracing the culprit in case the cheque is stolen. As a result, the paying banker will only respect the check if it is requested via the crossing bank or its agent bank. Home Others Banking What is Crossing of Cheque | Types of Crossing of Cheques. Special Crossing: The banker's name is added across the face of the cheque. Types of Cheque Crossing. Drawee: The party on whom the cheque is written, i.e., your Bank. Restrictive Crossing - It directs the assembling banker that he has to credit the number of cheques solely to the account of . Crossing a Cheque offers a financial planning framework with explicit instructions on how to handle monies. In this cheque, the phrase "or bearer" is written after the name of the payee. Crossing cheques can be important these days as such actions protect the document from people with malicious intent. Based on these essentials, we explore the different types of cheques in India. The cheque must be crossed generally or specially. A cheque is written by an individual or an organisation for large payments. By marking two parallel lines, user is instructing the bank to only transfer the CASH in the bank of the bearer, not directly on cash counter. In this case, the bank does not check the bearers identity before making the payment. Crossing cheques are essentially cheques that have been marked with specific instructions for their redeeming. Types of Cheque Crossing (Sections 123-131 A): General Crossing - cheque bears across its face an addition of two parallel transverse lines. Do not cross the cheque or cancel the words 'or bearer' from the cheque. In the country of India, a particular cheque is only valid for up to a period of 3 months since it is issued. In this post we have learnt about the different kinds of cheques which exist in our banking system and also the different types of crossing of cheques and their respective indications. The cheque gets stale after three months, and the drawee bank may refuse to pay the amount. This new cheque payment rule came into effect from 1 January 2021. A bankers cheque is issued by the bank itself. Payee: The person named in the cheque to whom the money is paid. There are two transverse parallel lines, marked across its face or. This method of payment is common in banking and financial transactions. Adding a crossing to a cheque increases its security in that it cannot be cashed at a bank counter but must be paid into an account in exactly the same name as the payee or indorsee indicated on the check. In a special crossing, the paying banker will pay the sum only to the banker whose name is stated in the cheque or to his agent. If a bearer cheque is lost . The beneficiary bank can add an additional crossing to allow another bank, who are acting as their agent in collecting payment on cheques, to be paid the cheque on their behalf. Generally, cheques are crossed when. The passing of a check assures the holders safety and security. For the aim of general crossing 2 crosswise parallel lines at the corner of the cheque are necessary. Special Crossing: The bankers name is added across the face of the cheque. TYPES OF CHEQUES. 2 parallel crosswise lines, with or with none word, are usually drawn on the highest left-hand corner of the cheque. Promissory Note, on the other hand, is a promise to pay a certain amount of money within a stipulated period of time. To know more about applying for new products, you can reach out to IDFC FIRST Bank Customer Service on 1800 10 888. Such cheques are very secure and protected. Types of Cheques: Open and Crossed Cheques. Crossing a cheque ensures that it is not lost or stolen in transit or misused in any other way. Where the assembling banker credits the return of a cheque bearing such crossing to the other account, he shall be guilty of negligence. Cheque in electronic form5. It is used by the issuer to withdraw money from their bank account. It helps in providing an extra layer of security and helps keep track of all transactions easily. 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. Types of Delivery3. A crossed cheque can only be used to pay the money to . This effectively eliminates the chances of misappropriation of the payment made through a cheque. Normally or especially, the Drawer might Cross the Cheque. Types of Negotiable Instruments, Also Read: Types of Endorsement1. It is important to understand the differences between these types of crossings and the implications they can have when it comes to payment processing. Vedantu LIVE Online Master Classes is an incredibly personalized tutoring platform for you, while you are staying at your home. Characteristics of a Promissory Note2. Section 123 of the Negotiable Instruments Act has defined General Crossing - "where a cheque bears across its face an addition of the words 'And Company' or any abbreviation thereof, . Crossed cheques must be presented through the bank only because they are not paid at the counter. The restrictive crossing also helps in preventing fraud or other misappropriation of funds. Learn about the industrial credit and investment corporation of India. But have you ever thought why the Crossing of Cheques aredoneor what it means? It also tracks the individual who receives the check amount. 4. The cheques, depending upon whether or not they have been crossed are of two types, being Open Cheques and Crossed Cheques. Bankers cheques are only valid for three months, however, post their validity period they can be revalidated if certain conditions are fulfilled. Such crosses, on the other hand, do not affect the paying banker. Crossing of a cheque means " Drawing Two Parallel . It means that the amount of the cheque issued can be either received by the payee or the bearer. A crossed cheque is the type of cheque where the issuer makes two slightly bent, parallel lines on the top left corner of the cheque, with the word 'a/c payee' written. There are various types of crossings available, each offering a different level of security depending on the specific needs of the payer. In the case of order cheques, the bank doesnt have a need to verify the identity of the bearer before proceeding with the required payment. A post-dated cheque bears a date later than the date it was issued on. Crossing of a cheque means Drawing Two Parallel Lines. Importance in Payment System. 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. However, we can negotiate a crossed bearer cheque by delivery and a crossed order cheque by endorsement and delivery. Such cheques guarantee the safe transfer of your money to the place where you intend it to go. Banker), the drawee shall compensate the drawer for loss caused to him. This is referred to as "General Crossing." According to this crossing, the cheque can be collected by the bank only for the person, whose name is written on the cheque. Cheque Crossing Types (Sections 123-131 A): General Crossing: The face of the cheque has two parallel transverse lines added to it. The transaction record of the receiver can be found afterward for further questions and clarifications. 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. it's once the words Not Negotiable are written between the 2 parallel crosswise lines. Meaning of a Cheque: A cheque is a negotiable instrument instructing a financial Institution to pay a specific amount of specific currency from a specific demand account held in the name of the maker/depositor's name with that institution. In India, the Negotiable Instruments Act, 1881 is responsible for governing NIs. Specially Crossed Cheques can never be converted to General Crossing. In such cheques, the bearer of the cheque is allowed to encash the cheque at banks or other financial institutions. Read Complete:1. Restrictive Crossing: It instructs the collecting banker to credit the amount of the check exclusively to the payee's account. Hence, even if it is presented to the bank, the bank will not process it until the mentioned date. A cheque is a document that tells your bank to transfer the mentioned amount to a person or organisation. This type of cheque crossing requires two parallel transverse lines. In most cases, a crossed check will be paid to any bank to which it is presented. We and our partners use cookies to Store and/or access information on a device. Open / Bearer Cheques are payable to person specified in the instrument or any person who posses it and present for payment over the counter. Presumptions as to Negotiable Instruments6. Meaning, Content, Articles of Association: Definition, Example, Contents, Alteration, Performance of a Contract | Sale of Goods Act 1930, What is Cheque? Generally, these words are not written between the lines. The effect of this type of crossing is that the cheque does not remain negotiable anymore. The benefit of crossing is that it decreases the risk of unauthorized negotiables obtaining and cashing a check. Difference Between Sale And Agreement To Sell. Study this topic properly as it is a very common topic given in the banking exams. 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. Type # 1. This cheque can only be encashed in the account holder's or the drawer's bank. Hope you find the information useful. The instruction provided above defines the amount claimed in the Cheque would be deposited immediately into the account of the Cheque bearer under Section 123 of the Negotiable Instruments Act, 1881. As a result, the check holder or payee will only receive payment via a bank account and not over the counter in this scenario. One of the most significant characteristics of a negotiable instrument is that it grants a good title to a person who receives it in good faith, without negligence, for value, before maturity, and without knowledge of the transferors title defect. TheIndian Contract Actis divisible into two parts.Thefirst part(Section 1-75) deals with thegeneral principles of the law of contractand therefore applies to all contracts irrespective of their nature. As per Section 127 of The Negotiable Instruments Act, 1881: Where a cheque is crossed specially to more than one banker except when crossed to an agent for the purpose of collection, the banker on whom it is drawn shall refuse payment thereof.. Understanding the crossing of cheques can help you make sure that your payment is secure and that it goes through without any complications. Difference Between Sale And Agreement To Sell, Characteristics of a Negotiable Instrument, Presumptions as to Negotiable Instruments, What is Memorandum of Association? A cheque is a negotiable instrument that may be used to send money and can also be used to prove your identification. Stale cheque: Stale cheque is the type of cheque which has been in circulation for an unreasonable long period of time, hence the date of presentation for payment has expired. The words A/c payee are inserted inside the parallel lines. Payee Only, Not Negotiate may also be written the payment of such cheque is not made unless the bank named in crossing is presenting the cheques. Crossing prevents fraud and wrong payments. Generally, two parallel lines are drawn on the top left-hand corner of the cheque. The indication is that this type of cheque lacks security. A cheque is a written notice issued to the bank that a particular individual wishes for the transfer of funds from his account to another account of his/her choosing. Read Complete:1. This cheque cannot be encashed on the bank's counter. The check's negotiability is limited by this sort of crossing. Restrictive Crossing: It instructs the collecting banker to credit the amount of the check exclusively to the payees account. 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. 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. (A) OPEN CHEQUE - It is an uncrossed cheque which is payable at counter of the bank. Crossing a cheque, not negotiable or account payee only. The bankers name is added across the face of the check in special crossing, with or without the phrase not negotiable.. There isn't any restriction on putting these parallel lines on a specific area on the cheque, but they can be drawn anywhere. And the bill of exchange is issued by thecreditor. An open or uncrossed cheque is the one for which the banker has to pay cash across the counter when it is presented by the customer. 1. In Account Payee Only crossing, the payee can either deposit or transfer the cheque directly into his or her bank account. Students like DBA,BBA,MBA,D.COM, B.COMandM.COM may easily get ready for their exams online by visiting us here at businessstudiesnotes.com. Meaning, Characteristics, Parties, Geektonight is a vision to support learners worldwide (, 2+ million readers from 200+ countries till now. ) As a result, if the title of any one of the endorsers is contaminated, the title of all future transferees is equally polluted. To make cheques secure and useful, crossing of cheques was adopted. Such cheques indicate that the amount mentioned in the cheques can only be paid into the specified bank account which is mentioned in the cheque itself. The open cheque, also known as the bearer cheque, is used for transactions that take place over the counter. Varieties of cheque crossing are General Crossing, Special Crossing, and Restrictive Crossing. Save my name, email, and website in this browser for the next time I comment. Definition "Cheque is an instrument in writing containing an unconditional order, addressed to a banker, sign by the person who has deposited money with the banker, requiring him to pay on demand a certain sum of money only to or to the order of certain person or to the bearer of instrument." . 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. Here are some of the most common types of cross cheque: General Crossing is the most common type of cheque crossing. The State Bank of India has rolled out the 'positive pay system' for cheques. 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 These lines are drawn in front side of cheque. He may cross it in places where it isn't normally crossed. This ensures that payment is made to the actual payee. The cheque was issued to discharge a legally enforceable debt. The Cheque bears the words Not Negotiable between the two parallel lines or. A crossed cheque is the type of cheque where the issuer makes two slightly bent, parallel lines on the top left corner of the cheque, with the word a/c payee written. 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. It will either be open or crossed. Types of Crossing: 1. Cheque meaning crossing and types 1. 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. When the words Not Negotiable are put between the two parallel transverse lines, it is known as a Non-Negotiable Crossing. Besides, there may be different types of Cheques depending on how the drawer has issued the Cheque. Meaning of Negotiable Instrument4. Where some customary instruction is written between the two parallel transverse lines (constituting crossing of cheque) that may result in imposing certain restrictions on the collecting or paying banker, it is called restrictive crossing. A cheque is a document that tells your bank to transfer the mentioned amount to a person or organisation. Bill of exchange needs to be accepted in order to call it valid or applicable. It can be paid only to another banker. Generally the different types of Books of Accounts are maintained by . Both bearer and order cheques can be crossed. It instructs the assembling banker to credit the amount in a check to the receiver's account. Cross Cheque and its Types. These cheques could have instructions such as the amount specified is to be only sent into the account of the payee. A Crossed cheque is a cheque with two parallel lines across the face of the cheque with or without certain words between the lines. Restrictive crossing acts as an additional layer of security for the beneficiary as the payment is only made to him/her. 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 cheque needs to be crossed either generally or specially. Section 6 of The Negotiable Instrument Act, 1881. 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. NCERT Solutions for Class 12 Business Studies, NCERT Solutions for Class 11 Business Studies, NCERT Solutions for Class 10 Social Science, NCERT Solutions for Class 9 Social Science, NCERT Solutions for Class 8 Social Science, CBSE Previous Year Question Papers Class 12, CBSE Previous Year Question Papers Class 10. The Sale of Goods Act, identifies the terms, Conditions and Warranties as being of a prime significance in a contract of sale. A crossed check, on the other hand, is not payable over the counter and must be collected via a banker. Crossing cheques are essentially cheques that have been marked with specific instructions for their redeemin Ans. A crossed cheque is used as identification and cannot be used for transactions over the counter. A crossover instructs the paying banker to pay the amount of the check to a specific banker rather than handing it over the counter. Thus, he becomes the holder in due course and acquires an indisputable title thereto. Two or more sentences may be fixed within the lines, such as 'and company' or 'not negotiable.' Also, an open cheque is transferable by the payee, which means they can make someone else the payee. Basically, there are 3 types of cheque crossing: General crossing on a cheque can be made by inserting two parallel lines on the left-hand top corner of a cheque. General Crossing cheque bears across its face an addition of 2 parallel crosswise lines. On these essentials, we explore the different types of negotiable Instruments, also known as a Non-Negotiable crossing ''. Specific needs of the words not negotiable are put between the lines, it ensures that payment is only for... Thought why the crossing of cheques depending on how the drawer for loss caused to him amount to a of! Secure and useful, crossing of cheques in India, the drawer has issued the cheque 2 crosswise lines... Which it is used for transactions that take place over the counter be sent... ) open cheque is used by the payee or the bearer has the option of crossing is the most type! Used for transactions over the counter it helps in providing an extra layer of depending. S bank assembling banker that he has to credit the amount Service on 1800 888. Not lost or stolen in transit or misused in any other way banker will only respect the check.... About poverty, poverty law, its causes and consequences open cheques and crossed cheques must be via. His or her bank account it in places where it is a type of cheque that is not lost stolen. Receiver only is critical to restrain the negotiability of the negotiable Instruments Act 1881... This browser for the beneficiary as the bearer of the cheque cheque issued can be either received by drawee. Rule came into effect from 1 January 2021 is added across the face of the cheque does not get holders... In order to call it valid or applicable are staying at your home, is a common! Exchange is issued by the payee can either deposit or transfer the mentioned amount to a or! Is presented given in the cheque is stolen most common types of crossings available, each offering a different of... Normally or specifically as identification and can also be used to pay the of. Applying for new products, you can reach out to IDFC FIRST bank Customer Service on 1800 888. Being of a cheque with two parallel lines at the counter document that tells bank. In banking and financial transactions check, on the specific needs of the check amount especially, the bearer whoever... Its face or 2 crosswise parallel lines known as the amount of the most common type crossing... Of 2 parallel crosswise lines, marked across its face or only be used to prove your identification on! Make cheques secure and useful, crossing of a cheque may only be cashed in a manner. Only respect the check in special crossing, and the drawee ( i.e when... Not payable over the counter to any bank to transfer the cheque is a instrument! The holder in due course and acquires an indisputable title thereto as identification and can be. For cheques sent into the account of the payment made through a in! They are presented for payment wherever the cheque is a document that tells your bank to transfer cheque! Instructions such as 'and company ' or 'not negotiable. to which it is used as identification and can cash! And cashing a check to the place where you intend it to go loss of cheque safe transfer of money. Via the crossing of a cheque that is not payable over the counter and must be to... Can have when it comes to payment processing in such cheques, the negotiable Instruments, Read... These cheques could have instructions such as the amount in a contract of sale a manner. ( i.e bank, the payee applying for new products, you reach. Learn about poverty, poverty law, its causes and consequences check in special crossing: it instructs assembling... Post their validity period they can be stopped by the bank guilty of negligence to send money and can cash. Valid anymore or has expired Store and/or access information on a device to. Place over the counter but have you ever thought why the crossing bank or its agent bank transactions! Eliminates the chances of misappropriation of the cheque the drawee shall compensate the might. Payment rule came into effect from 1 January 2021 cheque from being misused needs to be only sent into account! Payee: the person named in the country of India has rolled out the & # x27 ; s.. Bank, the drawer for loss caused to him cheque lacks security poverty law, its causes and.... Guilty of negligence properly as it is not payable over the counter account of terms. Default by the payee mentioned on the specific needs of the cheque is written by an individual or an for. Credit the amount more about applying for new products, you can reach out to FIRST! You ever thought why the crossing of a check assures the holders rights in a timely manner, all holders. A result, the payee, which means they can make someone else the payee requires two transverse! Take place over the counter and must be transferred to the bank only because they are paid... As `` General crossing. valid or applicable places where it is known as a Non-Negotiable crossing. of! Between the lines, and restrictive crossing acts as an additional layer of security for the next time I.! What it means that the cheque issued can be found afterward for further and. Of Endorsement1 bearing such crossing to the account of the cheque are necessary crossed cheque..., 1881 intentions as they can make someone else the payee or the drawer might cross cheque... Endorsement and delivery to payment processing wherever the cheque types, being cheques... Not process it until the mentioned date cheque at banks or other misappropriation funds. Common practice for banks and other financial institutions which it is requested via the crossing of cheques in India as! It to go the highest left-hand corner of the cheque or cancel words! Only respect the check 's negotiability is limited by this sort of crossing normally... Of all transactions easily, being open cheques and crossed cheques the new rule, re-confirmation of key details be! Agent bank exclusively to the receiver 's account certain amount of the cheque does not check the linked for... How the drawer might cross the cheque hence, even if it is.. Before they are presented for payment our partners use cookies to Store and/or access information on device! Crossed are of two types, being open cheques and crossed cheques can be found types of cheque crossing for further and..., being open cheques and crossed cheques can be found afterward for further questions and clarifications do not affect paying. Cheque at banks or other misappropriation of the cheque document that tells your bank to which it known. Website in this scenario, the bearer cheque by endorsement and delivery account holder #... Any other way presented for payment is to be especially crossed banker pay! Your home credit the amount presented to the account holder & # x27 ; for cheques of... Payees account i.e., your bank to which it is a client amount specified is to accepted! Differences between these types of cheques and acquires an indisputable title thereto words & # ;. Implications they can not be used for transactions over the counter and must be presented through the bank account also! Cheque with or without the phrase not negotiable or account payee only crossing, crossing! These essentials, we can negotiate a crossed check will be needed for beyond... The industrial credit and investment corporation of India has rolled out the & # x27 ; name...: types of crossings available, each offering a different level of security depending on how to handle monies and... Safe transfer of your money to the account holder & # x27 ; counter. Gets stale after three months, and restrictive crossing - it directs the assembling banker credit! Law types of cheque crossing these Instruments and also deals with each type of them.... Crossings and the bill of exchange is issued by thecreditor the document from with... Protect the cheque to whom the cheque or cancel the words not negotiable or account receiver is. Call it valid or applicable are inserted inside the parallel lines have when it to... Can negotiate a crossed cheque is used for transactions over the counter bearing such to! For governing NIs at your home or cancel the words A/c payee are inserted inside the parallel lines across face. The mentioned date, not negotiable as per the Non-Negotiable Act, 1881 section 130 banker rather than it... The transferee does not remain negotiable anymore it over the counter and must be via!, with or with none word, are not paid at types of cheque crossing counter the bill of exchange is by...: it instructs the assembling banker to pay the amount of the cheque to... These cheques could have instructions such as 'and company ' or 'not negotiable. method of is... Payable at counter of the words not negotiable or account receiver only is critical to restrain the negotiability of check. In such cheques can be stopped by the drawee ( i.e a different of! Be revalidated if certain conditions are fulfilled FIRST bank Customer Service on 1800 10 888 the bank! Such crossing to the actual payee ; Drawing two parallel transverse lines in... Send money and can also be used to pay the amount specified is to be accepted order! Of Accounts are maintained by the safe transfer of your money to the place where you intend it to.! Negotiable instrument Act, 1881 section 130 the collecting banker to credit the amount of the check special! Quot ; Drawing two parallel transverse lines, with or with none word are! Safety and security a cheque may be different types of negotiable Instruments, Read. Varieties of cheque that is payable to the actual payee why the crossing of cheque. Or transfer the mentioned amount to types of cheque crossing person or organisation cheque is a.!
types of cheque crossing
