Crossing of Cheques

A Crossed Cheque
A cheque can be crossed by drawing
two parallel lines transverse lines //
drawn on upper left corner of the
cheque.
The purpose of crossing is to give a
direction to the bank not to pay the
cheque across the counter but to pay it
only to a bank.
The two types of crossing are as
follows:

1. 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
Generally, cheques are crossed when
There are two transverse parallel lines, marked across its
face or
The cheque bears an abbreviation "& Co. "between the two
parallel lines or
The cheque bears the words "Not Negotiable" between the
two parallel lines or
The cheque bears the words "A/c. Payee" between the two
parallel lines.

2. Special crossing
Section 124 of the Act refers to Special crossing.
Where a cheque bears across its face in addition to the
name of the banker either with or without the words or
the words not negotiable, then the cheque is said to
have been crossed specially. The object of special
crossing is to direct the banker to pay the cheque only if
it is presented through the particular bank mentioned.
When a particular bank's name is written in between the
two parallel lines the cheque is said to be specially
crossed.
In addition to the word bank, the words "A/c. Payee
Only", "Not Negotiable" may also be written

Account Payee Crossing

In this type of crossing the words
account payee or payees account or
A/c payee is added to the general or
special crossing.It has the following
effects:
1. It becomes non transferable
2. It becomes duty of collecting bank
to credit the proceeds of the cheque
only to the account of the payee
named in the cheque

Not negotiable crossing

The words 'Not Negotiable' can be added
to general as well as specialcrossing and
a crossing with these words is known as
not negotiable crossing.
The object of not negotiable crossing is
to provide protection to the holder or
drawer of a cheques because even if
such cheques goes into wrong hands the
true owner will not loose his claims.

Who may cross cheque?

1. When a cheque is uncrossed the holder may cross it
generally or specially.
2. When a cheque is crossed generally the holder may
cross it specially.
3. When a cheque is crossed generally or specially the
holder may add the words not negotiable.
4. When a cheque is crossed specially the bank to
which it is crossed may again cross it especially to
an other bank
5. When an uncossed cheque or cheque crossed
generally is sent to bank for collection the bank may
cross it especially to itself.