Question

What are the advantages of crossing of cheque?​

Answer 1

Explanation:

The usefulness of a crossing lies in the fact that a crossed cheque cannot be paid at the counter of the paying bank but can be collected only through a bank .crossing provides protection and safeguard to the owner of the cheque as by securing payment through a Banker it can be easily detect to use the money is received . where the cheque is crossed the paying banker shall not pay it accept to banker in case of 'not negotiable' crossing the person holding such a cheque gets no better title and that of his transferre

Answer 2

Answer:

Crossing the cheque is a safety measure taken by an individual.

Explanation:

Crossing of the cheque is done by drawing two parallel transverse lines across the left top corner, with or without writing certain text. When it is crossed, only its mode of payment is altered.

Crossed cheque payments are no longer made at the counter but into the account of the holder.

Different types of crossing cheques:

1. general crossing cheque
2. restrictive crossing cheque
3. special crossing cheque
4. double-crossing cheque

Advantages:

• Risks because of lost cheques are lessened.
• Forgeries are minimized.
• Crossed cheques are to be paid only to the banker by the paying banker.
• Fraudulent people cannot obtain payments without revealing their true identities.
• The bank collector will collect the cheque from the customer only.

Hence, crossing the cheque is advantageous, the money transaction is safe.