What is meant by general crossing?

What is meant by general crossing?

General Crossing: When across the face of a cheque two transverse parallel lines are drawn at the top left corner, along with the words & Co., between the two lines, with or without using the words not negotiable. When a cheque is crossed in this way, it is called a general crossing.

Which Crossing is a special crossing?

Section 124 of The Negotiable Instruments Act, 1881 defines Special Crossing as: “Where a cheque bears across its face an addition of the name of a banker, either with or without the words “not negotiable”, that in addition shall be deemed a crossing, and the cheque shall be deemed to be crossed specially and to be …

What are the different types of crossing?

Types of Cross Cheque

• General Crossing. Special or Restricted Crossing (Section 124) In the case of special crossing, the cheque bears the name of the bank, either with or without the words ‘not negotiable’.
• Special Crossing. Not negotiable crossing (Section 130)
• Non- Negotiable Crossing. Amount Payee Crossing.

What is meant by crossing of a cheque?

A crossed cheque is a cheque that has been marked specifying an instruction on the way it is to be redeemed. A common instruction is for the cheque to be deposited directly to an account with a bank and not to be immediately cashed by the holder over the bank counter. Cheques can be open (uncrossed) or crossed.

Which is essential for special crossing?

Special Crossing – what is essential: Bank’s name must appear with or without two parallel lines. Under Special Crossing, protection to the bank is available under Section : 124 of NI Act. Special Crossing – what is essential : Bank’s name must appear with or without two parallel lines.

Who is paying banker?

Paying banker is a banker, who actually pays a cheque to his customer or to the order. of his customer. For example, a customer draws a cheque on his banker.

Which is the safest form of crossing in cheque?

Explanation: In Account payee crossing the amount will not be paid to anybody over the counter. It will be credited to the account of the payee only. Thus account payee crossing ensures safe transfer of funds.

How do you cross check?

A crossed check is any check that is crossed with two parallel lines, either across the whole check or through the top left-hand corner of the check. This double-line notation signifies that the check may only be deposited directly into a bank account.

How do you cross a check?

After filling the particulars in the cheque with the signature just cross(//) on the left top corner of the cheque mentioning either “account pay” or “crossed” between the lines. ‘Crossing’ a cheque means drawing two parallel lines on the face of a cheque, after filling a cheque with the details.

What are the benefits of crossing a cheque?

The benefits of a crossed cheque is as follows: Crossing of a cheque makes it difficult for a wrong person to get payment of the cheque. This is because, crossing is a direction to the paying banker to pay the amount mentioned in the cheque to the account of the payee and not across the counter.

What is meant by banker’s lien?

Lien is one of the important rights enjoyed by a banker. Lien means the right of the creditor to retain the goods and securities owned by the debtors until the debt due from him is repaid. It confers upon the creditor the right to retain the debtor’s security and not the right to sell it.

Who is drawer?

The maker of a bill of exchange or cheque is called the “drawer”; the person thereby directed to pay is called the “drawee”.

What is the difference between General Crossing and special crossing?

General Crossing – It is a cheque which bears across its face two parallel transverse lines without any words as (‘and company’ ‘or & Co.’) written in between these two lines. 2. Special Crossing – It is a cheque in which the name of the bank is written between the two parallel lines and hence it can be paid to that specific banker only.

What is special crossing and restrictive crossing in banking?

Special Crossing – cheque bears across its face an addition of the banker’s name. Restrictive Crossing – It directs the collecting banker that he needs to credit the amount of cheque only to the account of the payee. Non-Negotiable Crossing – It is when the words ‘Not Negotiable’ are written between the two parallel transverse lines.

What is a general crossing on a cheque?

General crossing: Section 123 of the Act refers to general crossing. Where a cheque bears across its face two traverse lines with or without the words or the words ‘not negotiable, the cheque is said to have been crossed generally. Where a cheque is crossed generally, the banker shall not pay it, otherwise than to the banker” (Section 126).

How to negotiate a crossed bearer cheque?

Addition of words ‘Not negotiable’ or ‘Account Payee only’ is necessary to restrain the negotiability of the cheque. The crossing of a cheque ensures security and protection to the holder. However, we can negotiate a crossed bearer cheque by delivery and a crossed order cheque by endorsement and delivery.