Question

explain about crossing of cheque with types and explain its type ?​

Answer 1

Answer:

Crossing a Cheque

A crossing is an instruction to the paying banker to pay the amount of cheque to a particular banker and not over the counter. The crossing of the cheque secures the payment to a banker.

It also traces the person so receiving the amount of cheque. Addition of words ‘Not negotiable’ or ‘Account Payee only’ is necessary to restrain the negotiability of the cheque. The crossing of a cheque ensures security and protection to the holder.

However, we can negotiate a crossed bearer cheque by delivery and a crossed order cheque by endorsement and delivery

Types of Cheque Crossing

General Crossing – cheque bears across its face an addition of two parallel transverse lines.

Special Crossing – cheque bears across its face an addition of the banker’s name.

Restrictive Crossing – It directs the collecting banker that he needs to credit the amount of cheque only to the account of the payee.

Non-Negotiable Crossing – It is when the words ‘Not Negotiable’ are written between the two parallel transverse lines.