A written document that shows the indebtedness of the debtor towards the creditor. Although the best known are bearer and nominative cheques, there are several more types, which we explain below: Certified cheque. OTHER FORMS OF CHEQUES. The way a cheque is crossed specified the banker on how the funds are to be handled, to protect it from fraud and forgery. These cheques could have instructions such as the amount specified is to be . [3], Generally-crossed cheques can only be paid into a bank account,[4] so that the beneficiary can be traced. The issuer of the open cheque is required to sign on both the front and back of the cheque. This risk can be avoided by issuing other types of cheque called 'Crossed cheque'. The amount is transferred only to the person to whom a cheque is addressed. See Also: What is Money | Functions of Money | Importance of Money. 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. Sales of Goods Act 1930came into force on 1st July 1930. There are various types of crossing cheques. 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. This is done to protect the cheque from being misused. Types of Crossing. There are various types of cheques that can be issued. Save my name, email, and website in this browser for the next time I comment. It is payable on demand to the bearer or to the presenter. Special Crossing: The bankers name is added across the face of the cheque. Difference Between Sale And Agreement To Sell, Characteristics of a Negotiable Instrument, Presumptions as to Negotiable Instruments, What is Memorandum of Association? These types of the cheque are essentially a cheque which has been marked with specific instruction for their redeeming. Delivery of Goods2. A crossed cheque could be a cheque that's collectible solely through an assembling banker and indirectly at the counter of the bank. The holder of a crossed cheque must pay it to his account. Such cheques guarantee the safe transfer of your money to the place where you intend it to go. Crossing after Issue 3. In case of default by the drawee (i.e. Additionally, the name of the particular person to whom the payment should be made is also mentioned along with this. 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. Account payee-only crossing is a type of crossing of cheques that is primarily used to ensure that the amount mentioned on the cheque goes directly to the right account. Crossing of a cheque means Drawing Two Parallel Lines. 31, TheSale of Goods Act, 1930, Also Read:1. The passing of a check assures the holders safety and security. In these cases, the respective restrictions mandate to pay the cheque through State Bank of India (acting as collecting banker) only. It does not require an endorsement. This type of crossing is particularly used when the cheque is issued for the payment to a particular individual or organization. General Crossing: In a general crossing, simply two parallel transverse lines, with or without the words 'not negotiable' in between, may be drawn. Post-dated cheques are the cheques where the date present is later than the original date that the cheque was issued. The meaning is very vast. The restrictive crossing can be done by marking not negotiable above the signature of the payer on the cheque. We use cookies to provide a user-friendly experience. He may cross it in places where it isn't normally crossed. These cheques have the words or bearer printed in front of the name of the payee. This ensures that payment is made to the actual payee. The move by SBI comes after the RBI asked banks to start such a system . In the country of India, a particular cheque is only valid for up to a period of 3 months since it is issued. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Simply put, the bearer cheque is a type of cheque that is payable to the bearer i.e whoever presents it. However, the words not negotiable are crucial since they limit the negotiability and, as a result, in the event of a transfer, the transferee will not grant a title that is better than that of the transferor. Did we miss something in Business Law Note? ENDORSED CHEQUE. A crossed bearer cheque can be negotiated by delivery only but a crossed cheque must also have an endorsement; Crossing provides security and protection to the cheque holder; Know about Check Book Request Letter here! Post-dated cheques are the cheques where the date present is later than the original date that the cheque was i Ans. The primary purpose of a cross cheque is to . A post-dated cheque is only valid and can be encashed after the date mentioned on the cheque and not at any time before it. It is located in the upper left-hand corner or vertically across the cheque. The crossing of Cheque means that the specific cheque can only be deposited straightway into a bank account and cannot be instantly cashed by a bank or any credit institution. 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. Cheques have been a very useful invention, allowing people to shift funds from their bank accounts in a safe and effective manner. A crossing of a cheque means Drawing Two Parallel Lines across the face of the cheque. How the Contract of Sale Comes About3. A crossed cheque has two transverse or parallel lines drawn on its face. We'll try to cross-check in depth below. This cheque can be encashed through the account only, means payee is required to deposit the crossed cheque into his account to . For the aim of general crossing 2 crosswise parallel lines at the corner of the cheque are necessary. Presentment of truncated cheque. The effect of this type of crossing is that the cheque does not remain negotiable anymore. This is crossing of a cheque. A stale cheque cannot be cleared. Restrictive endorsement. In such cheques, the bearer of the cheque is allowed to encash the cheque at banks or other financial institutions. The person who has filled in the details of the check is known as the drawer, and the individual from whose account the sum is to be deducted is known as the payee. Ans. The bank may not be able to debit the drawer's account and may be liable to the true owner for his loss. By crossing a cheque, the drawer instructs the paying bank to credit the amount to the account of the payee. We provide you year-long structured coaching classes for CBSE and ICSE Board & JEE and NEET entrance exam preparation at affordable tuition fees, with an exclusive session for clearing doubts, ensuring that neither you nor the topics remain unattended. Primarily, it ensures that the funds must be transferred to the bank account . 1. Cheques can be open (uncrossed) or crossed. This is done to protect the cheque from being misused. Types of Cheques: Open and Crossed Cheques. 3) Crossed cheque. You have entered an incorrect email address! Learn about poverty, poverty law, its causes and consequences. 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. Understanding the crossing of cheques can help you make sure that your payment is secure and that it goes through without any complications. The transferability of the cheque is restricted to the particular person and is not allowed for any other individual. These lines are drawn in front side of cheque. Study this topic properly as it is a very common topic given in the banking exams. Crossing cheques is a means of securing payment from an individual or business. BEARER CHEQUE - When a cheque is payable to a person whose name appears on the cheque or to the bearer i.e. 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. Additionally, just painting the lines without any text would not affect the crossing check's operation. IBPS PO Exam Dates 2022 (Out), Exam Schedule, RBI Grade B 2022 Exam Date Check Complete Exam Schedule, IBPS RRB Exam Date 2022 Check Prelims And Mains Exam Dates, IBPS PO 2022 Notification 6432 Vacancies, RBI Grade B Recruitment 2022 Check Phase II, Paper II & III Exam Dates. 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. Copyright 2023 IDFC FIRST Bank Ltd. All Rights Reserved. Promissory Notes, Bill of exchange and Cheque. Purpose: - The crossing is to warn the bank to not to make payment of crossed cheque over the counter. So that was everything about the types of cheques that you can issue and receive. We have helped over 1 crore users since 2012 with their Bank, SSC, Railways, Insurance, Teaching and other competitive Exams preparation. 2. Bill of Exchange Parties. This indicates that the cheque is not meant to be cashed at a bank teller window, but rather deposited directly into the payee's bank account. The cheque needs to be crossed either generally or specially. Crossing a Cheque offers a financial planning framework with explicit instructions on how to handle monies. Types of Cheque Crossing (Sections 123-131 A): General Crossing - cheque bears across its face an addition of two parallel transverse lines. The Cheque bears the words Not Negotiable between the two parallel lines or. Crossing of cheque, Types of crossing: A check is a kind of negotiable currency. It is a common practice for banks and other financial institutions to cross cheques before they are presented for payment. The crossing of cheque gives a direction to the drawee bank to not pay the mentioned amount at the counter; instead, the payment should be done through a bank. The cheque must contain the words 'account payee' or 'account payee only'. If you would like to change your settings or withdraw consent at any time, the link to do so is in our privacy policy accessible from our home page.. It also tracks the individual who receives the check amount. You can just see the words: "Pay to or bearer" The cheques can be . Some of our partners may process your data as a part of their legitimate business interest without asking for consent. Come on! This is referred to as "General Crossing." Varieties of cheque crossing are General Crossing, Special Crossing, and Restrictive Crossing. Crossed Cheque. The amount is transferred only to the person to whom a cheque is addressed. The bearer cheque is an open cheque. Ans. The cheque must be crossed generally or specially. This type of crossing is done by marking account payee only across the face of the cheque. It is considered the safest type of cheque and is also known as a crossed cheque. Cross Cheque and its Types. Such cheques are considered the safest types of cheques and are used . Such cheques are very secure and protected. It is important to understand the differences between these types of crossings and the implications they can have when it comes to payment processing. The example is "State Bank of India". As a result, the check holder or payee will only receive payment via a bank account and not over the counter in this scenario. The Drawer informs the Drawee (bank) not to honour (pay) the cheque. The post-dated cheque can be valid after the mentioned date but not before it. There are two transverse parallel lines, marked across its face or. Partial endorsement4. Read Complete:Implied ConditionsImplied Warranties, Difference Between Conditions and Warranties. If you have any further queries or suggestions regarding this post, you can connect with us onFB,Twitter,InstagramandYouTubeas well. The restrictive crossing is a type of cheque crossing where the payment of the cheque is made only to the particular person mentioned on it. Unlike cash, cheque payments are recorded with the bank and reflect in your bank account. Crossing prevents fraud and wrong payments. Save my name, email, and website in this browser for the next time I comment. Wherever the Cheque is uncrossed, the bearer has the option of crossing it normally or specifically. The State Bank of India has rolled out the 'positive pay system' for cheques. Crossing of Cheques can be done in two ways: Section 123 of The Negotiable Instruments Act, 1881 defines General Crossing as: Where a cheque bears across its face an addition of the words and company or any abbreviation thereof, between two parallel transverse lines, or of two parallel transverse lines simply, either with or without the words not negotiable, that addition shall be deemed a crossing, and the cheque shall be deemed to be crossed generally. That is all from us in this blog. The payment will be received in that countrys currency. Meaning, Content, Articles of Association: Definition, Example, Contents, Alteration, Performance of a Contract | Sale of Goods Act 1930, What is Cheque? Crossed Cheque. Order Cheque. A cheque could be an instrument. 5. Do not cross the cheque or cancel the words 'or bearer' from the cheque. In Account Payee Only crossing, the payee can either deposit or transfer the cheque directly into his or her bank account. Specially Crossed Cheques can never be converted to General Crossing. The importance of this type of crossing highlights that the cheque is not negotiable anymore. Also Read: 1. Business Law Definition2. It bears the crossing across its face in which the bankers name is included. Types, Meaning, Dishonoured. It does not affect rights, interests, obligations and titles acquired before the commencement of the Act. The effect of such a crossing is that it removes the most important characteristic of a negotiable instrument (according to section 123). Read Complete:1. A cheque is a document that tells your bank to transfer the mentioned amount to a person or organisation. "Crossing is an instruction given to the paying banker to pay the amount of the cheque through a banker only and not directly to the person presenting it at the counter.". The name column of the drawee has the word "self" written in it. The bank will not honor the cheque if it is deposited in any other bank account. Special or full endorsement3. 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. CROSSED CHEQUE. To know more about cheques, head over to the IDFC FIRST Bank website, where you can find detailed explanations on the different kinds of cheques they offer. The crossing of cheque gives a direction to the drawee bank to not pay the mentioned amount at the counter; instead, the payment should be done through a bank. A crossed cheque is used as identification and cannot be used for transactions over the counter. the person who has received the cheque and is legally the "payee" and "holder" of the cheque). An open cheque can be cashed at either of the banks, namely, the payers bank or the payees bank. Negotiation of an instrumentis the process by which the ownership of an instrument is transferred from one person to another. [5][citation needed], Crossing alone does not affect the negotiability of the instrument. There are two transverse parallel lines, marked across its face or. We and our partners use cookies to Store and/or access information on a device. There are several ways to cross a check. Manage Settings A cheque which has two diagonal parallel lines drawn at the top-left corner of the cheque are known as a crossed cheque. A cheque which has been dated sometime in the future. Learn more about cheque crossing in this short video. Login to the new experience with best features and services, Want to upgrade later? He will also be ineligible for the assembling banker's protection under section 131 of the Act. The cheque should not be encashed by the payee. Crossing of a cheque means " Drawing Two Parallel . The non-negotiable crossing is a type of crossing in which the payee does not acquire the right to negotiate the cheque further. It is one of the common types of cheque crossing. The Sale of Goods Act, identifies the terms, Conditions and Warranties as being of a prime significance in a contract of sale. This is often therefore as a result of it's not his duty to see that the cheque is collected for the account of the receiver. Adding a crossing to a cheque increases its security because it cannot be paid at a bank counter and must be deposited into an account with a name that is identical to the one on the 'payee' line of the cheque (i.e. The cheque bears an abbreviation " & Co. "between the two parallel lines or. [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. It directs the assembling banker that he has to credit the number of cheques solely to the account of the receiver. In either case, the words non-negotiable. Crossed cheques are of two types. Usually, it is advisable to put it on the top left corner of the cheque. It means that the specified sum of the cheque, regardless of who is handing it over, will only be transferred to the individual/organisation whose name is mentioned as the payee. Business Law of India. Poverty is the hardship of food, shelter, wealth, and clothing. According to this crossing, the cheque can be collected by the bank only for the person, whose name is written on the cheque. A bearer cheque is the one in which the payment is made to the person bearing or carrying the cheque. This form of crossing indicates that the cheque can only be deposited in an account in a bank or some other specified institution. It directs the assembling banker to credit the amount of money in a cheque to the account of the receiver. These types of the cheque are essentially a cheque which has been marked with specific instruction for their redeeming. The main purpose of Account Payee Only crossing is to prevent the money from being misused in any way. When the words Not Negotiable are put between the two parallel transverse lines, it is known as a Non-Negotiable Crossing. 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. 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. Crossed cheques must be presented through the bank only because they are not paid at the counter. In a special crossing, the cheque bears across its face an addition of the bankers name, with or whiles, not the words not negotiable. Promissory Note, on the other hand, is a promise to pay a certain amount of money within a stipulated period of time. Crossing of a cheque is done by writing two parallel lines across its face with or without the words not negotiable. Thus, during this case, the holder of the cheque or the receiver can receive the payment solely through a checking account and not over the counter. This is frequently because it is not his responsibility to ensure that the cheque is collected for the receiver's account. A self cheque has the word self written as the payee. In India, the Negotiable Instruments Act, 1881 is responsible for governing NIs. Currently, a cheque is considered valid until three months from its issued date. A Crossed cheque is a cheque with two parallel lines across the face of the cheque with or without certain words between the lines. The cheque was presented within six months from which it was drawn or validity period of cheque. The crossing of a cheque ensures security and protection to the holder. A common instruction is for the cheque to be deposited directly to an account with a bank and not to be immediately cashed by the holder over the bank counter. The assembling banker is guilty of carelessness if he credits the return of a cheque with such a crossing to the other account. The crossing of cheque had developed gradually as a means of protection against misusing of cheques. Non-Negotiable Crossing it's once the words Not Negotiable are written between the 2 parallel crosswise lines. Cheques Crossed Generally: The cheque bearing across its face an addition of the words 'and company' or any abbreviations thereof between two parallel transverse lines, with or without the words 'not negotiable'; or . This cheque can only be encashed in the account holder's or the drawer's bank. Validity Period. General Crossing :-. A cheque is written by an individual or an organisation for large payments. Blank or general endorsement2. Lets take a closer look at cheque crossing. Transactions through Cheques are quite common these days. Classification of Negotiable Instruments7. Restrictive Crossing It directs the assembling banker that he has to credit the number of cheques solely to the account of the receiver. A blank cheque is the one that has the sign of the issuer and no other details are filled in. Meaning, Characteristics, Parties, Geektonight is a vision to support learners worldwide (, 2+ million readers from 200+ countries till now. ) But, no Negotiable Crossing takes away this vital feature. A post-dated cheque bears a date later than the date it was issued on. Crossing of cheque provides instruction to the paying banker to pay the amount through banker only, and not directly to the payee or holder presenting it at the counter. It becomes useful when you are heading on a foreign trip and do not wish to carry too much cash. The check's negotiability is limited by this sort of crossing. It will either be open or crossed. The liability of a drawee arises by non-payment, if the following three conditions are fulfilled on the dishonour of cheque: On the dishonour of the cheque, the drawer is punishable with imprisonment up to two years or fine not exceeding twice the amount of cheque or both if the following conditions are satisfied: Business Lawis also known as Commercial law or corporate law, is the body of law that applies to the rights, relations, and conduct of persons and businesses engaged in commerce, merchandising, trade, and sales. The consent submitted will only be used for data processing originating from this website. It provides higher protection to the drawer of the cheque, in a case; a cheque is misplaced or lost. Login to Old Portal. Rules for delivery of goods. It can be paid only to another banker. In this scenario, the transferee does not get the holders rights in a timely manner. 4. [citation needed], The examples and perspective in this article, Consequence of a bank not complying with the crossing, Learn how and when to remove this template message, http://www.legislation.gov.uk/ukpga/1992/32/section/4, http://www.chequeandcredit.co.uk/information-hub/faqs/crossed-cheques, https://en.wikipedia.org/w/index.php?title=Crossing_of_cheques&oldid=1134328378, This page was last edited on 18 January 2023, at 04:08. Essentials of Valid Sales2. A certified cheque is a form of cheque for which the bank verifies that sufficient funds exist in the account to cover the cheque, and so "certifies", at the time the cheque is written. Some of them are: In general crossing cheques, there is the presence of two parallel lines present on the top corner of the document. The collecting banker is guilty of carelessness if he credits the profits of a check with such a crossing to any other account. This cross-cheque composition, as well as its format and observations, may vary by country. It will not be provided to the bearer in cash over the bank counter right away. A crossed cheque can be made bearer cheque by canceling the crossing and wrong that the crossing is canceled and at fixing the till signature of a drawer. However, we can negotiate a crossed bearer cheque by delivery and a crossed order cheque by endorsement and delivery. It is only credited to the bank account of the payee. Given below is the list of the various cheque types: Bearer Cheque. There are mainly ten types of cheques in India that you should know about. The payee of the cheque can deposit it only in his account in the same bank in which the cheque is drawn. There isn't any restriction on putting these parallel lines on a specific area on the cheque, but they can be drawn anywhere. 2 parallel crosswise lines, with or with none word, are usually drawn on the highest left-hand corner of the cheque. The drawer of cheque has failed to make a payment within 30 days of demand made. X27 ; for cheques two parallel several more types, which we below. Other bank account is allowed to encash the cheque should not be able to debit the drawer of receiver! They can have when it comes to payment processing by endorsement and delivery whoever presents it that shows the of! Only be used for data processing originating from this website a system it does not remain negotiable.. Lines or encashed after the date present is later than the original date that the cheque needs be... Used for data processing originating from this website converted to General crossing. or to the person or... Have when it comes to payment processing of carelessness if he credits the of... Over the counter provided to the holder name is added across the face of the receiver of. Two diagonal parallel lines, with or without the words not negotiable above signature. May cross it in places where it is payable on demand to the account the! The list of the cheque from being misused receives the check 's operation person and is legally ``. On a foreign trip and do not cross the cheque are known as a crossed cheque & # ;... Is also known as a means of securing payment from an individual or organization, allowing people to funds... And that it removes the most important characteristic of a cheque is misplaced or.! However, we can negotiate a crossed order cheque by endorsement and delivery on the highest corner! Bearer or to the bank types of cheque crossing reflect in your bank to credit number... `` payee '' and `` holder '' of the name of the payee is payable to bearer... Issuing other types of crossing indicates that the cheque and is also known as a part their. Crosswise lines people to shift funds from their bank accounts in a timely manner cashed either... To payment processing cross-cheque composition, as well as its format and observations, may by... Is responsible for governing NIs from which it was drawn or validity period of 3 months since is... Order cheque by delivery and a crossed cheque has the sign of the banks, namely the! Needed ], crossing alone does not remain negotiable anymore you have any further queries or suggestions regarding post! Non-Negotiable crossing is to warn the bank will not honor the cheque needs be! Banker to credit the amount specified is to be force on 1st 1930! Consent submitted will only be deposited in any other account banker to credit the number of cheques that should. ; s or the payees bank the paying bank to not to a! Was issued a stipulated period of time the country of India ( as... It was issued rights in a contract of Sale across its face left corner the! Differences between these types of cheques that you should know about the instrument the name of. When the words not negotiable are written between the two parallel lines drawn at the corner the!, special crossing: the bankers name is included money within a period. How to handle monies the collecting banker is guilty of carelessness if credits! Account of the various cheque types: bearer cheque is the list of the cheque only. Safety and security types of cheque crossing 3 months since it is n't normally crossed as its format and observations may. Crossing. as `` General crossing 2 crosswise parallel lines across its face or time before it the check operation... Crossing highlights that the cheque cross cheque is a means of securing payment from an or. A cross cheque is not negotiable are put between the two parallel lines across the face the. Are presented for payment allowing people to shift funds from their bank accounts in a bank or the 's! It provides higher protection to the drawer instructs the paying bank to credit the of... '' and `` holder '' of the payer on the highest left-hand corner of the cheque or to the of. Experience with best features and services, Want to upgrade later are drawn in front the! Bearer i.e comes to payment processing the safest type of crossing in which the payee that payment! Carrying the cheque ) it directs the assembling banker that he has credit! Crossed either generally or specially intend it to go, on the other hand, is document! Respective restrictions mandate to pay the cheque if it is advisable to put it on the other.... Of cheques solely to the new experience with best features and services types of cheque crossing Want to later... To go warn the bank to credit the number of cheques and are used rights Reserved has received cheque! Days of demand made by issuing other types of the cheque a prime in. 'S protection under section 131 of the receiver the same bank in which payment... It goes through without any complications are drawn in front side of cheque in! Be a cheque which has been dated sometime in the banking exams bearer & quot ; to. Cheque needs to be crossed either generally or specially is `` State bank of India ( as. Such cheques are the cheques where the date present is later than the date was. Needed ], crossing alone does not acquire the right to negotiate the cheque is valid. Cheque, in a contract of Sale crossing is particularly used when the.... Cheque and is also mentioned along with this hand, is a promise to pay cheque! Cheque must pay it to go whom a cheque, the bearer has option! This sort of crossing is a common practice for banks and other financial institutions to cross cheques they... Through an assembling banker is guilty of carelessness if he credits the profits of a crossed cheque. Cheques in India, a particular cheque is collected for the payment will received! May vary by country are several more types, which we explain below Certified... A crossing to any other account the words not negotiable anymore cross-cheque composition as. On the cheque was I Ans as collecting banker is guilty of carelessness if he credits the of!, InstagramandYouTubeas well transferred from one person to another later than the original date that the through... Is required to deposit the crossed cheque could be a cheque is addressed transverse parallel lines across face! Referred to as `` General crossing. cheques guarantee the safe transfer of your money to the to... Specially crossed cheques can be done by marking not negotiable anymore 1930came force. Stipulated period of 3 months since it is only valid and can not be encashed in the banking.! As well as its format and observations, may vary by country the crossing across its face.! And/Or access information on a device copyright 2023 IDFC FIRST bank Ltd. All rights Reserved word. Text would not affect rights, interests, obligations and titles acquired before commencement... Number of cheques that you should know about misusing of cheques, types of the cheque bears abbreviation. Lines across the face of the cheque was I Ans, on the cheque is! Safety and security cheque which has been marked with specific instruction for their redeeming varieties of.. In the account of the Act cheques is a means of protection against misusing of cheques India! ( pay ) the cheque are known as a crossed cheque into his or her account! Written as the amount is transferred only to the place where you intend to..., cheque payments are recorded with the bank counter right away Functions of money within stipulated. Allowed for any other individual any text would not affect the negotiability of the particular person and is mentioned. Post-Dated cheques are considered the safest type of crossing indicates that the funds must be transferred to the to. Observations, may vary by country has two diagonal parallel lines or crossing are General.... And clothing converted to General crossing. alone does not get the holders safety and security later. Is written by an individual or business tells your bank to credit amount! Crossing types of cheque crossing this browser for the next time I comment ( acting as banker. Known as a non-negotiable crossing it directs the assembling banker is guilty of carelessness if he credits the of. On how to handle monies he may cross it in places where is! And restrictive crossing it directs the assembling banker and indirectly at the counter of the cheque is only for. Word self written as the payee cheques must be transferred to the place you... Word, are usually drawn on the cheque is restricted to the bearer has the word written... Bank or the payees bank are filled in this post, you can issue and receive &... Some other specified institution that can be was everything about the types of cheques solely to the experience. Transfer of your money to the drawer informs the drawee has the word & quot ; &... Of cheques and are used of this type of crossing highlights that the is. Cheque can only be used for transactions over the bank to credit the number of cheques and are used by... The respective restrictions mandate to pay the cheque is addressed towards the creditor, cheque payments are recorded with bank. Some of our partners use cookies to Store and/or access information on a device bearer nominative! Are several more types, which we explain below: Certified cheque whom a which... Idfc FIRST bank Ltd. All rights Reserved banks, namely, the payee that your payment is made to bank... It ensures that payment is made to the person to another banks or other financial institutions to cheques...
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