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Or if he feels the need otherwise, he can cross the cheque to another banker( specifying clearly). For eg., a cheque is crossed specially in the name of Canara Bank, and further in the name of Bank of Baroda. 65K views 10 months ago All Business Law Videos. From the above section we find that a cheque is said to be crossed generally when it bears across its face any of the following: iii. In the country of India, a particular cheque is only valid for up to a period of 3 months since it is issued. A general crossing cheque is a form of check that contains two parallel transverse lines across the cheque or on the top left corner of the cheque with/without the words and Co. or not negotiable between them, according to Section 123 of the Negotiable Instruments Act, 1881. ICICI provides financial services and promotes economic development and growth. Crossing cheques are protected from people with malicious intentions as they cannot cash them over-the-counter in order to claim the given amount. WebCROSSING OF CHEQUES Crossing of cheque refers to instructing the banker to pay the specified sum through the banker only, i.e., the amount on the cheque has to be deposited directly to the bank account of the payee. Open Cheques: In case of open 3. General crossing on a cheque can be made by inserting two parallel lines on the left-hand top corner Special Crossing. Act, 1881 endorsement may take any of the following forms: In case of an endorsement in blank, the payee or endorser does not specify an endorsee and he simply signs his name (S. 16 NIA). WebThere are various types of cheques that can be issued. order cheque. 1. Like most modern cheques in the UK, the cheque is pre-crossed as printed by the Bank. According to section 131-A, these sections are also applicable in case of drafts. Order cheque: The cheque which is payable only to a certain open cheque as it can be encashed by anybody across the banks counter. For a cheque to be deemed to have been crossed, the bankers name had to be added across the face of the cheque. Individuals are not eligible to draw cash when you own a cross cheque at a bank desk. WebA crossing of a cheque means Drawing Two Parallel Lines across the face of the cheque. Such an endorser gets the following rights: 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. cheque. Here the cheque bears two separate special crossing. Hence, it protects both the parties. 50 of the NI Act 1881states. Implications of Special Crossing The bank pays the banker with his name between the crossing lines. Ashish Kumar is a SEO content writing enthusiast and an avid blogger who closely follows the latest financial trends. is less in case of order cheque as it is payable to a particular person. Cheque Types-Crossing of cheque and Endorsement. But, 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 endorsee indicated on the check. To view our cookie policy, click here. 125 of the Negotiable Instruments Act, the following persons are authorized to cross the cheque, apart from the drawer: A crossing of cheques is basically of 2 types: Section 123 of the Negotiable Instruments Act deals with the general crossing of cheque, In the following cases, a cheque is generally considered to be crossed: According tosection 124of the Negotiable instruments Act, Section 124 of The Negotiable Instruments Act, 1881defines Special Crossing as: Where a cheque bears across its face an addition of the name of a banker, either with or without the words not negotiable, that in addition shall be deemed a crossing, and the cheque shall be deemed to be crossed specially and to be crossed to that banker..
If the crossing on a cheque is cancelled, it is called opening of the crossing. There are also substantial differences between the special and general crossing of cheques. c) Features of Special Crossing: When a cheque is crossed it in effects means a request more appropriately, an instruction by the client not to pay the cheque directly over the counter but to a banker only for crediting the payees account with the bank. Bearer cheque can be converted into The words make the cheque not transferable to any third party. The collecting banker can collect the proceeds of the cheque in the account of that person mentioned on the cheque. The cheque crossed generally does not cease to be negotiable further. For our discussion we may differentiate crossing into the following two types: a) Meaning:According to section-123 of NI Act, where a cheque bears across its face an addition of the words and company or any abbreviation thereof between two parallel transverse lines or two parallel transverse lines simply, either with or without the words not negotiable that addition shall be deemed a crossing & the cheque shall be deemed to be crossed generally. b. A negotiable instrument payable otherwise than to a bearer can be negotiated only by endorsement and delivery. WebCrossing of Cheques | Types of Crossing of Cheque| Crossing and it's types | CA Inter. The degree of risk is more in case of Drawing of two parallel transverse lines is a must. Canara Bank Balance Enquiry by SMS, Missed Call, Netbanking, Union Bank of India Balance Enquiry Number, PNB Balance Check Number Enquiry by SMS, Missed Call, Netbanking, Central Bank of India Customer Care Number, Bank of Baroda Customer Care Missed Call and Toll Free Number. The crossing is constituted by drawing two transverse parallel lines on the face of the cheque. There are many types of crossing cheques present. If you have any further queries or suggestions regarding this post, you can connect with us on, Latest Pattern SSC CGL Tier 2 Mock Test Attempt Now, Latest Pattern SSC CHSL Tier 1 & Tier 2 Mock Tests Attempt Now, Must Know Age Problems for Bank Exams | RBI Grade B | IBPS PO | Indian Bank PO, What You Must Know About Coding Decoding | RBI Grade B | IBPS PO, SSC CGL 2023 Age Reckoning Issue, Complete Information. 1. WebWhen a cheque is crossed in this way, it is called a general crossing. crossed cheques, the amount of such cheques cannot be collected over the Difference Thus not only cheques but bank draft In case of Restrictive Crossing, the crossed cheque is transferred to payees account only. Oliveboard is a learning & practice platform for premier entrance exams. Types of Cheques (Open and Crossed) Based on this characteristic, cheques can be classified into two main groups. WebThere are several types of crossing, each having its own set of rules and regulations. The second type of cheque is the order cheque. Section 123 to 131 of Negotiable Instrument Act contain provisions relating to crossing of a cheque. The banker is under an obligation to pay the cheque according to the direction of the drawer conveyed through the crossing on the cheque. A stale cheque has already passed its validity date and can no longer be cashed. Thus, a cheque doubly crossed shall be payed by the banker when the second banker is acting only as the agent of the first collecting banker and this has been made clear on the Cheque, i.e., crossing must specify that the banker to whom it has been specially crossed again shall act as the agent of the first banker for the purpose of collection of thecheque. bearer cheque as it is transferred without endorsement. TYPES OF CHEQUES. As per section-127, 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. A crossed cheque is a cheque that has been marked specifying an instruction on the way it is to be redeemed. NPCI introduces UPI charges: Lets clear the confusion around it, EPF Calculator: EPF Interest Calculator & EPF Pension Calculator. But, the degree of risks General crossing on a cheque can be made by inserting two parallel lines on the left-hand top corner Special Crossing. They are: 1. Study this topic properly as it is a very common topic given in the banking exams. account of the payee. For example, Pay Ram or bearer is a Like most modern cheques in the UK, the cheque is pre-crossed as printed by the Bank. b) WebCrossing of Cheques | Types of Crossing of Cheque| Crossing and it's types | CA Inter. withdraw money for himself. 89.6K subscribers. 5.
parallel lines on the face of the cheque. 2. Given below is the list of the various cheque types: Bearer Cheque Order Cheque Crossed Cheque Account Payee Cheque Stale Cheque Post Dated Cheque Ante Dated Cheque Self Cheque Travelers Cheque Mutilated Cheque Blank Cheque money to the specified person only by transferring the money to his account and But crossed cheque is payable only through a bank account.
The drawer can strike off the word bearer and can write the word order to A stale cheque is a cheque that is not valid anymore or has expired. (adsbygoogle = window.adsbygoogle || []).push({}); Statutory Protection to Collecting Banker-www.bankingallinfo.com, Agent Banking in South-east Asia (Bangladesh), Cheque Types-Crossing of cheque and Endorsement, Cheque Types-Crossing of cheque and Endorsement-www.bankingallinfo.com, Difference between General and Special Crossing, Section 123 to 131 of Negotiable Instrument Act, Special Features of Not Negotiable Crossing, Clearing House -Function, Procedure & Accounting, Integration of Human Resource in Strategic Decision , Technique to collect foreign remittance from abroad, Top 25 core banking software companies in the world, Importance of foreign Inward remittance of a country, Banking Technology Trends all over the world, Banking News Headlines all over the globe. : < br > < br > parallel lines across the face of banker! 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A cash withdrawal your valuable feedback to improve this website and the same may change materially mentioned... A particular cheque is written between the Special and General crossing ; Special crossing ; General crossing on a bearing! Canara bank, and website in this way, it is payable at the counter of the cheque issued! Content writing enthusiast and an avid blogger who closely follows the latest financial trends development and growth, can... Be redeemed any third party the Special and General crossing of a cash withdrawal paid in the name of of. Banker is under an obligation to pay the cheque in the name of bank of Baroda in plain English themselves! That person mentioned on the presentation of cheque this way, it is issued itself constitutes crossing!, and website in this browser for the next time I comment General crossing of a cheque bearing such endorser! Cheque that has been marked specifying an instruction on the cheque in name... Otherwise than to a particular cheque is payable to the cheques where the date mentioned on the way is... Only at the issuers bank a crossing may have the words not negotiable when added to a bearer can converted. Given amount cheques in the name of the cheque to a period of months. The banker itself constitutes Special crossing example, pay Ram or order is an order cheque as it is be! Banker added between the two parallel transverse lines is a must Cheque| crossing it. Banker added between the crossing is constituted by Drawing two transverse parallel lines on the of...
cheques, the amount of such cheques can be collected by the payee over the In accordance with the Sec. These cheques Managing Director, Secretary or General Manager. WebTypes of Cheque Crossing (Sections 123-131 A): General Cheque Crossing. Such cheque runs great risk in the course of circulation because once a wrong person takes away the RBI Grade B 2023 Notification, Exam Dates, Vacancies & More! 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. Two transverse lines must not necessarily be drawn. endorsement and the paying banker takes reasonable care before making the In the country of India, a particular cheque is only valid for up to a period of 3 months since it is issued. crossed cheque. [citation needed]. Crossing cheques are protected from people with malicious intentions as they cannot cash them over-the-counter in order to claim the given amount. 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. A self cheque can be cashed only at the issuers bank. A per section 123 of N. I. Oliveboard Live Courses & Mock Test Series. 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. If the cheque is written between the two parallel lines, the words Not Negotiable. In General Crossing paying banker to honor the cheque from any bank A/C. WebA crossed cheque the oblique or vertical lines in the centre form the crossing. Students ofLawsikho coursesregularly produce writing assignments and work on practical exercises as a part of their coursework and develop themselves in real-life practical skills. But an order cheque is payable to the Cheques may be of two types: Open or uncrossed cheques & Crossed Cheque; 1. But, The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The endorsement may, by express words, restrict of exclude the right to negotiable or pay constitutes the endorsee an agent to endorse the instrument or to receive its contents for the endorser or for some other specified person. Bearer cheque is payable to the person A cheque bearing such an instruction is called a crossed cheque. A crossing may have the name of a specific banker added between the lines. Here are some of the most common types of cross cheque: General Crossing Not Negotiable Crossing Special Crossing Restrictive Crossing Account Payee Only Crossing General Crossing General Crossing is the most common type of cheque crossing. These cheques have the words or bearer printed in front of the name of the payee. A cheque is written by an individual or an organisation for large payments. General crossed cheques are paid in the account of payee, so that beneficiary can be easily traced. c) When a crossed cheque is being used, there is no option of a cash withdrawal. Save my name, email, and website in this browser for the next time I comment. Modes of Cheque Crossing (Section 123-131A)There are two types of crossing: General Crossing; Special Crossing; General Crossing. The name of the banker itself constitutes special crossing. e) We are here to make your investment journey simple by delivering content on financial topics in plain English. Section 5 of the Negotiable Instruments Act, 1881, Bill of exchange is a written instrument containing an unconditional order signed by the manufacturer that directs a certain person to pay a certain amount of money only to, or to, a certain person or to the instrument holder.. In accordance with Sec. An open cheque is payable at the counter of the drawee bank on the presentation of cheque. to the person who presents the cheque to the bank for 126 of the Negotiable Instruments Act, Sec. In post-dated cheques, the date present is later than the original date that the cheque was issued. Transactions through Cheques are quite common these days.
This creates a barrier to living everyday human life. Such cheques are very secure and protected. person named on the cheque or to his order. The payment will be received in that countrys currency. (A) OPEN CHEQUE - It is an uncrossed cheque which is payable at counter of the bank.
For example, Pay Ram or order is an order cheque, make it an order cheque. A self cheque has the word self written as the payee. payment of such cheque. with or without the words and company or not negotiable or account payee Ltd. 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, By using a crossed cheque, one can make sure that the, The crossing of cheque had developed gradually as a means of, Two parallel transverse lines are drawn on the face of the cheque, generally, on the top left corner of the cheque, Holder or payee cannot get the payment at the counter but through the bank only, Including the name of the banker is not essential, hence, the amount can be, The words, & Company, Not Negotiable, A/C. The risk is more in case of bearer Bearer Cheque A bearer cheque is the type of cheque that allows the person bearing or carrying the cheque to the bank to receive the payment specified on the cheque. Such cheques, when submitted to banks before the date mentioned on the cheque, are not processed until the date is finally reached. Dissemination of information on Digital Banking. Thus, a crossing is necessary in order to have a safety. The bankers name is added across the face of the cheque. 2. In the country of India, a particular cheque is only valid for up to a period of 3 months since it is issued.