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Question
What are the advantages of 'Account Payee' crossing of a cheque?
Answer in Brief
Solution
When the words 'Account Payee Only' are inserted between the two parallel transverse lines, the drawee bank is directed to place the amount of the cheque to the credit of the payee's account only. Such a crossing is known as 'a'restrictive crossing' because it restricts the payment. It makes the cheque non-transferable.
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Crossing of Cheques
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