Types of Cheque Crossing: [1] General Crossing: A cheque is said to be crossed generally when it bears across its face any of the following: [1] Two transverse parallel lines. [2] Two transverse parallel lines with the word “And Company” or “And Co”. [3] Two transverse parallel lines with any abbreviation of the word “& Company”. [4] Two transverse parallel lines with the words “Not Negotiable”. [5] Two transverse parallel lines with the words “Account Payee Only”. The cheque crossed generally does not ceases to be negotiable further. The collecting banker can collect the proceeds of the cheque in the account of that person mentioned on the cheque. A crossed cheque can be made bearer cheque by cancelling the crossing and writing that the crossing is cancelled and affixing the full signature of drawer. [2] Special Crossing: It is a cheque in which the name of the bank is written between the two parallel lines and hence it can be paid to that specific banker only. Inclusion of the name of a banker is essential in special crossing . Special Crossing can never be converted to General Crossing. In Special Crossing paying banker to honor the cheque only when it is presented through the bank mentioned in the crossing and no other bank. # $upari Bhai
Posted on: Sat, 09 Aug 2014 01:53:45 +0000
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