What is Special Crossing of Cheque?

Recently, my uncle asked me to explain the various special crossing of the cheque. When I searched about it online, I found that a crossed cheque is a specific type of cheque that has two parallel lines drawn diagonally over the front of it. This crossing is a preventative step to guarantee the security of the funds being transferred and to stop fraud. I have mentioned a variety of crossings that may be done on a cheque below.

Types of Cheque Crossing

Let us understand more about different cheque crossing:

• General Crossing - Here, there is no extra instruction written inside the two parallel lines that are drawn on the face of the cheque. 

• Special Crossing - The name of a specific bank should be placed between the two parallel lines. 

• Restrictive Crossing - It instructs the banker that he must credit the specific amount of cheques to the receiver's account only.

• Non-Negotiable Crossing - Not negotiable is put between the two parallel lines.

Moreover, Trisha has explained the features of special crossing cheques above. These crossings limit the cheque's negotiability, guarantee that money gets deposited into the appropriate bank account, and stop cheques from being cashed without permission. People as well as companies can protect their assets and reduce the possibility of financial theft by using these particular crossings. I hope this helps you understand what is special crossing cheque.

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Cross cheques are negotiable documents that specify general instructions for cheques that have not yet been deposited into bank accounts. Cheque crossing comes in different forms, including general crossing, special crossing cheque, restricted crossing, and non-negotiable crossing.

What is special crossing of cheque?

A special crossing cheque is a type of cheque that has two parallel lines drawn across its face with the words “account payee only” or “not negotiable” written between the lines. This indicates that the cheque can only be deposited into the account of the payee and cannot be transferred or endorsed to anyone else.

I have also provided a specimen of special crossing cheque, for your reference;

• When you hold a cross cheque at a bank desk, you are not permitted to withdraw cash. It, therefore, protects both parties.

• The cross cheque should only be transferred to the payee's account in the event of account payee crossing.

• The act of crossing cheques guards against fraud for the person who issued it.

• Crossover cheques make it simpler to identify who cashed the cheques than open cheques do.

• If the cheque is lost or damaged, a crossed cheque stops fraud from happening.

Special crossing cheques are a security feature that adds an extra layer of protection to cheques, limiting their negotiability and reducing the risk of fraud and unauthorized access to funds. If you are unsure about the proper use of special crossing of cheques, it is advisable to seek advice from your bank or financial institution.