Meaning of Crossing a cheque. Cheque Crossing types in India

‘Crossing a cheque’ is the process of drawing two parallel lines across the top left corner of the cheque with or without certain words. A cheque is said to be crossed when such lines  are drawn on its  face. The main advantages of crossing a cheque are as follow:

  1. It prevents the payment of the cheque to a wrong person
  2. It assures safe payment of money to the genuine account holder
  3. It facilitates tracing of the recipient of money
  4. It assures safety in circulation

Also Read:

What is Cheque. What are the different types of Cheques in India ?
How to draw Cheque properly In Hindi
How to easily apply for new Cheque Book of any Bank (Best Method)
What is Cheque Bounce. Various cases of Cheque bounce in India.

What are various Cheque crossing types in India

  1. General crossing: In general crossing two parallel lines are drawn on the face of a cheque with or without the words ‘ & Co.’, ‘Not Negotiable’ and  ‘A/c payee only’ etc.
    The word ‘not negotiable’ do not restrict the transferability of a cheque but the negotiability of the cheque is lost. The transferee cannot get a better title than that of a transferor. The words ‘ & Co.’ have not specific meaning and are used as a matter of convention. 
  1. Special crossing: If the name of the banker is also mentioned within the two parallel lines with or without the words ‘Not Negotiable’, ‘A/c payee only’,etc. It is called special crossing. In special crossing, only the bank named therein can collect the payment of the cheque on behalf of the payee. For example, A issues a cheque with special crossing to B. B will deposit  the cheque in his bank account. Amount of the cheque will be credited to B’s account and no cash payment of the cheque can be made on the counter.

 

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