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crossing a cheque is a process of drawing two parallel lines on a cheque with or without certain words
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∙ 12y ago
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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 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 Importance of crossing a cheque?
Because it is safe.
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.
How do you open a cheque?
A crossed cheque can be 'opened' and cashed over the counter when the authorised signatories (right mandate) signs against the crossing. Signing against the crossing could be one of three things: 1. signing on top of the crossing, 2. signing in the crossing, 3. signing beneath the crossing. Note that the combination of mandate that originally signed the cheque must sign to 'open' it.
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.
How do you open a crossed cheque?
A crossed cheque can be 'opened' and cashed over the counter when the authorised signatories (right mandate) signs against the crossing. Signing against the crossing could be one of three things: 1. signing on top of the crossing, 2. signing in the crossing, 3. signing beneath the crossing. Note that the combination of mandate that originally signed the cheque must sign to 'open' it.
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.
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.
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.
