Quick Answer: Who Can Cross The Cheque?

Who Cannot cross a Cheque?

Where the Cheque is uncrossed, the holder may cross it generally or specially.

Where it is crossed generally, he may cross it specially.

Where it is crossed generally or specially he may add the words ” Not Negotiable”..

Who is Authorised to cross a Cheque?

125 of the NI Act, the following people, apart from the drawer, are authorized to cross a cheque: The holder of a cheque is authorized to cross a cheque, either generally or specially, if the same is uncrossed. He is also entitled to cross a cheque specially if the same has been crossed generally.

What happens if you don’t cross your Cheque?

Crossing ensures that the amount is credited only to the payee’s account. Non crossed cheque does not require bank account to en cash it. Someone can encash it easily. … If the cheque gets cleared, the money is yours to keep, if the cheque bounces, you go home empty handed.

Is it mandatory to crossed the Cheque?

Crossing a 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.

What is meant by crossing of Cheque?

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.

What is the difference between bearer Cheque and crossed Cheque?

The bearer cheque does not contain the name of the payee and is payable to the person who presents it at the bank. … In case of crossed cheque, the name of the individual is already mentioned on the cheque. So, the money is paid to the specified person only. Bearer cheques are not safe and can be misused if lost.

Who can make crossing of the Cheque Is it mandatory to crossed the Cheque?

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 …

Why must we cross Cheque?

Adding a crossing to a cheque increases its security in that it cannot be cashed at a bank counter but must be paid into an account in exactly the same name as that which appears on the ‘payee’ line of the cheque (i.e. the person who has received the cheque, who is legally the “payee” and “holder” of the cheque).

Which is the safest form of crossing?

Grade separated crossingsGrade separated crossings are the safest form of railway crossing. Grade separation is a very expensive option which involves building either an overpass or underpass to separate the train tracks and the road. In other cases, the road may be realigned to improve sight distance at uncontrolled rail crossings.

What are the types of crossing of Cheque?

Here are different types of cheque crossings and their effects;General Cheque Crossing. Under general cheque crossing, the crossing is done by drawing two parallel transverse lines across the cheque. … Special Cheque Crossing. … Restrictive Crossing or Account Payee’s Crossing. … Not Negotiable Crossing.

What are the types of Cheques?

Based on these essentials, we explore the different types of cheques in India.Bearer Cheque.Order Cheque.Crossed Cheque.Open cheque.Post-Dated Cheque.Stale Cheque.Traveller’s Cheque.Self Cheque.More items…

What is the effect of not negotiable crossing a Cheque?

The effect of ‘not negotiable’ crossings This means that the transferee does not receive and is not capable of giving a better title to the cheque than the transferor had. The effect of crossing a cheque ‘not negotiable’ is to warn the transferee that his or her title is subject to all prior defects in title.