Question: Why Do We Cross The Cheque?

What is the difference between crossed and uncrossed Cheque?

An uncrossed cheque or an open cheque is a cheque that has not been crossed with two parallel lines on the top left corner.

Such cheques can be encashed at any bank.

You can collect the money for the cheque from the bank counter.

It can also be transferred to the bank account of the person who presented the cheque..

What is the effect of not negotiable crossing a Cheque?

The effect of ‘not negotiable’ crossings This means that the transferee does not receive and is not capable of giving a better title to the cheque than the transferor had. The effect of crossing a cheque ‘not negotiable’ is to warn the transferee that his or her title is subject to all prior defects in title.

Can a crossed Cheque be cashed?

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).

What are the features of Cheque?

Features of a chequeA cheque should be in writing and properly signed by the drawer.A cheque contains an unconditional order.A cheque issued on a specified banker only.The amount specified is always certain and should be clearly mentioned both in figures and words.The payee of a cheque is always certain.More items…•

What is the difference between check and Cheque?

Cheque and check appear in British English, and check appears in American English. In British English, cheque refers to a document used to pay from a person’s account. For other contexts, Brits usually use check.

What is the difference between open Cheque and crossed Cheque?

A crossed cheque is a cheque that has been marked to specify an instruction about the way it is to be redeemed. … An open cheque means the cheque can be deposited in the bank account only. A crossed cheque can only be cashed through a bank of which the payee of the cheque is a customer.

Can a bearer Cheque be crossed?

In case of a bearer cheque, the bank must do proper verification before making payment to the bearer of the instrument. In case of crossed cheque, the name of the individual is already mentioned on the cheque. So, the money is paid to the specified person only. Bearer cheques are not safe and can be misused if lost.

What is purpose of crossing?

Crossing is a direction to the paying banker to pay the amount of the cheque to another banker. Therefore, the paying banker will not pay the amount of the cheque to any one who wants the money across the counter.

What is the purpose of a Cheque?

A cheque, or check (American English; see spelling differences), is a document that orders a bank to pay a specific amount of money from a person’s account to the person in whose name the cheque has been issued.

What does it mean to cross a Cheque?

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.

Who Cannot cross a Cheque?

Where the Cheque is uncrossed, the holder may cross it generally or specially. Where it is crossed generally, he may cross it specially. Where it is crossed generally or specially he may add the words ” Not Negotiable”.

How do you cross a Cheque?

After filling the particulars in the cheque with the signature just cross(//) on the left top corner of the cheque mentioning either “account pay” or “crossed” between the lines. ‘Crossing’ a cheque means drawing two parallel lines on the face of a cheque, after filling a cheque with the details.

What is not negotiable crossing of Cheque?

Not Negotiable Cheque Crossing It is when the words ‘Not Negotiable’ are written between the two parallel transverse lines across the face of the cheque in the case of general crossing or in the case of special crossing along with the name of a banker.

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.