Question

What are types of crossing?

Explain general and special crossing of a cheque giving examples of each.

What are the different types of crossing?

Answer 1

1. General Crossing: General crossing of a cheque means drawing two parallel transverse lines on its face, with or without the words '& Co.', 'A/c Payee Only', 'Not Negotiable', etc., between them. The Negotiable Instruments Act states, "Where a cheque bears across its face an addition of the words 'and company', or any abbreviation thereof; between two parallel transverse lines, or of two parallel transverse lines simply either with or without the words 'Not Negotiable', that addition shall be deemed a crossing, and the cheque shall be deemed to be crossed generally." In general, the particular bank from which the payment should be made is not mentioned. The effect of general crossing is that the holder cannot encash it himself at the bank counter. He must deposit it with his bank, which would collect payment from the drawee bank.
   Example: A cheque with two parallel lines across the face of the cheque, often with the words "and company" or "& Co." written between the lines.
2. Special Crossing: Special crossing of a cheque means writing the name of the bank to whom the payment of the cheque is to be made. The name of the payee bank is written across the. The face of the cheque with or without the words 'Not Negotiable'. It is not necessary to draw two parallel transverse lines on the cheque. The effect of special crossing is that the drawee bank will make the payment only to the bank named in the cheque. A special crossing is safer than a general crossing because the amount is payable only to the bank named in the cheque.
   Example: A cheque with the name of a specific bank written between two parallel lines.