Quick Answer: What Is Special Crossing?

What are the two types of crossing?

Types of Cross ChequeGeneral Crossing.

According to Section 123, the common crossing of cheques means including some words in connecting the two lines drawn which signifies a crossed cheque.

Special or Restricted Crossing.

Not negotiable crossing (Section 130) …

Amount Payee Crossing..

When a Cheque is said to be crossed?

A crossed check is any check that is crossed with two parallel lines, either across the whole check or through the top left-hand corner of the check. This double-line notation signifies that the check may only be deposited directly into a bank account.

Why are Cheques double crossed?

Effect – Payment will be credited to the account of payee named in the cheque. (4) DOUBLE CROSSING – When a cheque bears two special crossing, is called Double Crossing. … It is made when the banker in whose favour the cheque is crossed does not have branch where the cheque is paid.

What is a crossing?

A crossing is a place where two roads, paths, or lines cross.

What is the effect of special crossing?

Effect of Special Crossing : There can be two special crossing. In this collecting banker add an additional crossing and write the name of other bank who act as their agent in collection of cheque. It allow other bank to collect the amount on their behalf.

What are the various types of crossing?

Here are different types of cheque crossings and their effects;General Cheque Crossing. Under general cheque crossing, the crossing is done by drawing two parallel transverse lines across the cheque. … Special Cheque Crossing. … Restrictive Crossing or Account Payee’s Crossing. … Not Negotiable Crossing.

What are the advantages of crossing a Cheque?

The benefits of a crossed cheque is as follows: Crossing of a cheque makes it difficult for a wrong person to get payment of the cheque. This is because, crossing is a direction to the paying banker to pay the amount mentioned in the cheque to the account of the payee and not across the counter.

What is account payee crossing?

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 that which appears on the ‘payee’ line of the cheque (i.e. the person who has received the cheque, who is legally the “payee” and “holder” of the cheque).

Can an account payee Cheque be cashed?

How To Deposit or Encash A/C Payee Cheque. If you receive an account payee cheque, remember you can’t cash it through the counter. You have to deposit it in your bank account with the cheque deposit slip.

What is absolutely essential for a special crossing?

14 Essentials of Special Crossing The name of the banker itself constitutes special crossing. It must appear on the left hand side, preferably on the corner. The two parallel transverse lines and the words ‘not negotiable be adedd to a special crossing.

Why is account payee written on Cheque?

An account payee cheque is a highly secured type of cheque as the specified amount can only be paid to the account holder. The payee cannot endorse the cheque to anyone else. The account payee cheque can only be encashed by depositing at the payee account.

What does payee mean?

A payee is a party in an exchange of goods or services who receives payment. The payee is paid by cash, check, or another transfer medium by a payer.