Question

What is crossing of a cheque?

Answer 1

1. Crossing a cheque means drawing two parallel transverse lines on the face of the cheque.
2. It is an instruction from the drawer to his banker to make payment only to the bank account of the payee and not to pay across the counter.
3. A crossed cheque cannot be encashed at the counter of the bank.
4. It has to be presented to the drawee bank through some other bank.
5. A crossed cheque is paid into the bank account of a person. The bank is responsible if the payment is made to the wrong person.
6. A cheque may be crossed by the drawer, the holder or the collecting banker.
7. The basic object of crossing a cheque is to prevent its fraudulent encashment.
8. Crossing provides protection or safeguard against loss to the drawer by securing payment through a bank.