I am quite used to the concept of crossed cheques. Crossing of Cheques is a procedure that applies general instruction to a cheque that is going to be deposited into a bank account. The instruction indicated above specifies that the amount mentioned in the cheque will be transferred directly into the account of the Cheque holder. And it will not be immediately transferred as cash to the holder over the bank counter, according to Section 123 of the Negotiable Instruments Act, 1881. We'll take a closer look at what happens if a crossed cheque is presented for payment.
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You can pay it only through a banker. A crossed cheque is one that has been marked to indicate how it should be redeemed.
What is a cross cheque?
Any cheque with two parallel lines is referred to as a crossed cheque. The lines can be written throughout the entire check or via the upper left corner. It simply indicates that the specific check may only be put into a bank account and cannot be redeemed by a bank or other credit facility immediately. Because the cash must be processed through a collecting bank, this provides a form of encryption to the payer.
Why should we cross cheques?
1) Crossing a cheque gives financial institution-specific instructions on how to handle funds.
2) Crossed cheques are typically identifiable by drawing two parallel crossing lines vertically across the cheque or at the top left-hand corner.
3) Between the lines, two or more words such as 'and company' or 'not negotiable' may be used. While you simply draw the lines without writing anything on them, it would not change the meaning of the crossed check.
4) Cheque writers can use crossed cheques to prevent the amount transmitted from being redeemed by an unauthorised person or stolen.
5) The nature of this format for crossed cheques may vary between countries in terms of its format or claims.
Various ways to cross cheque:
The direction supplied by the drawer (maker) of the specific cheque to the drawee bank is the subject of a cross cheque. This guideline directs you to pay the check at the bank's counter, but only to a person who presents it to you through a banker. Crossing allows you to track down the individual who received the money or payment. If you want to protect cheque payments in India, there are a variety of crossing instruments available, including general crossing, special crossing, account payee crossing and not negotiable crossing.
Now you know what happens if a crossed cheque is presented for payment.
Read More: What happens if a cheque bounces? How to fill cheque for electricity bill? How to find the cheque number?Your Feedback Matters! How was this Answer?
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What happens if a crossed cheque is presented for payment?
neha
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2022-04-20T15:13:53+00:00 2022-04-20T15:13:57+00:00Comment
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