Question

What is meant by crossing of cheque, discuss the different types of Crossing?

(300 words)

Answer 1

A crossed cheque is a cheque in which something has been marked referring to the way in which an individual can redeem this cheque. If you have handled cheques, probably you might have seen crossings directing you to deposit check directly into a bank account rather than getting the cash in hand. 2 parallel lines across the cheque vertically or 2 lines on the top left signifies the crossing.

There are 2 types of crossing:

1. General crossing: A crossed cheque generally has two parallel transverse lines, optionally with the words '& Co.' on the face of the cheque between the lines, at the top left corner or simply just at any space in the approximate half width of the cheque. Usually crossed cheques can only be paid into a bank account, to facilitate the tracing of the beneficiary.
2. Specific crossing: The cheques wherein some specific instruction is written between the two parallel transverse lines (i.e. the crossing of the cheque) that is meant to impose certain restrictions on the collecting or paying banker is termed as restrictive crossing. Example of this could be a bank X, which can madate the cheques to be deposited in bank X only and in no other bank.

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