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Answered 2012-01-20 05:54:55
crossing a cheque is a process of drawing two parallel lines on a cheque with or without certain words
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Who can cancel the crossing of the cheque?
The drawer of the cheque can cancel the crossing of the cheque , by cancelling the parallel lines and writing in words - Crossing Cancelled and Signing below it !
What is the effect of a crossing a cheque?
Crossing a cheque can have various effects. Typically a cheque is crossed to indicate something about the way it is to be redeemed.
What are general crossing and special crossing?
it is about crossing a cheque
What is the effect of crossing a cheque?
Crossing a cheque - means it can only be paid into a bank account. The only exception - is if you write the cheque out to cash.
What is the difference between general and special crossing of cheque?
A cheque may either be an open cheque or a crossed cheque. An open cheque is fraud prone by unscrupulous persons. It may cause loss to the true owner of the cheque or the banker. In order to prevent such a possibility of fraud, the system of crossing of cheque has been introduced. In other words, crossing has been introduced to prevent wrongful person from obtaining payment of a cheque. To encash a crossed cheque, a payee need to have a bank account or he can endorse it to another person who has an account in a bank. In both of these cases the payee's or the endorsee's identity can be easily established.Crossing is a direction to the paying banker that it should be paid only through a banker and not across the counter. Crossing is of two types: General Crossing (sec. 123 of NI Act) and Special Crossing (sec. 124 of NI Act)Two transverse parallel lines across the face of the cheque are compulsory in case of a general crossing. But two transversal lines are not required to in a special crossing. Mere writing a name of a bank across the face of the cheque constitutes special crossing. Here, in a special crossing, the amount of the cheque should be paid only through a specified bank. Thus an additional name of a banker is essential to constitue special crossing.M.J. SUBRAMANYAM.
What is the Importance of crossing a cheque?
Because it is safe.
What is crossing check?
Crossing a cheque refers to the action where the person issuing the cheque makes two diagonal lines on the top left corner of the cheque. This means that this cheque can be paid only into an account and not to a person who wants to encash it to direct cash. The person to whom the cheque is issued, must deposit it into his account if he wants the money. This is a safety feature that would come in handy in case of stolen or lost cheques. We can track who used the cheque using the deposit details. In short crossing conveys the intention of the drawer of the cheque that it should be paid only to a banker on behalf of its customer, who is named in the cheque.
Crossing a check?
Crossing a cheque means putting two parallel lines on the left hand top corner of the cheque. This means that, the cheque is a Account Payee cheque which means it can only be deposited into another account and cannot be exchanged for cash over the counter. This serves two purposes - you can keep a track of who encashed your cheque and also ensure that even if the cheque is lost, it cannot be misused by anyone. The person to whom the cheque was paid will be recorded.
What is the nature and crossing appearing on a cheque?
A cheque is crossed (two parallel lines) to show it can only be paid into an account. A cheque untouched i.e. no lines is called open, and can be cashed over the counter.
How do you open a crossed cheque?
Opening a crossed cheque needs not be by signing beneath the cross, above or on the cross since you need just one signature of the authorized person to authorize payment. Reasonably any second signature of the authorized person on the face of the cheque hould be an instruction to the bank to pay across the counter
What is the purpose of crossed check?
A Crossed Cheque is also called an Account Payee cheque. This type of cheque cannot be cashed directly. It can only be deposited into an account of the person to whom the cheque is issued. This is done to ensure that in case the cheque is lost, it cannot be cashed by anyone who finds it. Crossing a cheque is done usually by making two parallel lines in the top left corner of the cheque.
How is open cheque different from the crossed cheque?
Crossing a cheque means putting two parallel lines on the left hand top corner of the cheque. This means that, the cheque is a Account Payee cheque which means it can only be deposited into another account and cannot be exchanged for cash over the counter. This serves two purposes - you can keep a track of who encashed your cheque and also ensure that even if the cheque is lost, it cannot be misused by anyone. The person to whom the cheque was paid will be recorded.
What is the difference between a crossed cheque and an opened cheque?
Crossing a cheque means putting two parallel lines on the left hand top corner of the cheque. This means that, the cheque is a Account Payee cheque which means it can only be deposited into another account and cannot be exchanged for cash over the counter. This serves two purposes - you can keep a track of who encashed your cheque and also ensure that even if the cheque is lost, it cannot be misused by anyone. The person to whom the cheque was paid will be recorded.
Can a crossed cheque be endorsed?
"Account Payee" Cheque cannot be endorsed. only payee of the cheque is entitled to get credit of the amount i.e., the amount will be credited to his account only. However if it is "Not Negotiable" crossing it does not mean that the cheque can not be transferred further it can still endorsed but the transferee will not get better title than the transferor.
What is a restrictive crossing on a cheque?
Restrictive crossing is usually done on the left hand corner of cheques, a/c payee only being written in between the lines. Basically what this does is that it ensures that the money is not obtained at the counter as a crossed cheque can only be drawn from bank to bank or by a banker.
How make a check more secure?
There are 2 ways of issuing cheques. You can cross the top left hand corner of the cheque and then issue it or you can issue it without crossing. Crossing increases the security of the cheque because: A crossed cheque cannot be cashed directly. It can only be deposited into an account. They are also called account payee cheques which can be encashed only by individuals with valid bank accounts. This way we as well as the bank can track the cheque and the account into which the funds were transferred.
What is meant by post dated cheque?
Every cheque has a date that has to be entered in it that signifies the date from which the cheque is a valid instrument. So, if I were to issue a cheque today that you can encash anytime from now, I will put todays date as the cheque date. However, if I want you to cash it only after Dec, I will put 1st Jan 2014 as the cheque date. This means that, up until 31st Dec 2013, the cheque is worthless and you can cash it to get money only on or after 1st Jan. This is a postdated cheque because the cheque date lies in the future.
Would a bank accept a cheque spelled forty pounds?
How else are you meant to spell it!
What is the instruction to the bank on a crossed bank?
IF you meant 'on a crossed cheque' - it's an instruction to the bank, to credit the value of the cheque to the payee's account - rather than handing over the cash.
What does the golden net do on Animal Crossing?
golden tools on animal crossing are meant to make it easier to do what it is meant to do . so the golden net will make it easier to catch bugs and not scare them away.
How do you check a cheque?
To check a cheque, you must check if the cheque is checked by checking the checked cheque of checking a checked cheque as a checker.
What are the difference between open cheque and bearer cheque?
Bearer cheque: When the words "or bearer" appearing on the face of the cheque are not cancelled, the cheque is called a bearer cheque. The bearer cheque is payable to the person specified therein or to any other else who presents it to the bank for payment. However, such cheques are risky, this is because if such cheques are lost, the finder of the cheque can collect payment from the bank. Open cheque: When a cheque is not crossed, it is known as an "Open Cheque" or an "Uncrossed Cheque". The payment of such a cheque can be obtained at the counter of the bank. An open cheque may be a bearer cheque or an order one.
Is the correct grammar a cheque of or a cheque for?
cheque of is a right grammar!
Is a cheque also called a cheque leaf?
Yes. A Single cheque is also called a cheque leaf
Difference between order cheque bearer cheque?
A person holding the cheque can collect the amount if it is a bearer cheque. The payee (i.e. the person in whose favour the cheque is issued) only or his authorized person only can collect the amount of the cheque if it is an order cheque
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