A crossed check is a check that has been marked with two parallel lines, either across the face of the check or in the top left corner. The purpose of these lines is to indicate that the check cannot be cashed at a bank or financial institution over the counter, but must be deposited into a bank account. This is done to provide an extra level of security and to prevent fraud or unauthorized use of the check.
There are two types of crossed checks: general crossing and special crossing. A general crossing is indicated by two parallel lines across the face of the check and includes the words "and company" or "and Co." after the lines. This type of crossing is used when the check is being deposited into a bank account and is intended to prevent the check from being cashed at the bank.
A special crossing is indicated by two parallel lines in the top left corner of the check and includes the name of a specific bank after the lines. This type of crossing is used when the check is being transferred to a specific bank for deposit.
Crossed checks are often used in business transactions to ensure that funds are transferred safely and securely. They are also used in personal transactions to prevent fraud or unauthorized use of the check.
In conclusion, a crossed check is a check that has been marked with two parallel lines to indicate that it cannot be cashed at a bank or financial institution over the counter, but must be deposited into a bank account. This provides an extra level of security and helps to prevent fraud or unauthorized use of the check.
Crossed Check Law and Legal Definition
Bank will not honour that cheque as it is stale cheque. In a special crossing, the paying banker will pay the sum only to the banker whose name is stated in the cheque or to his agent. Is a cheque payable outside of banking hours? Also, once the instrument passes through a holder in due course, all the next holders conjointly receive an honest title. The court, after receiving the complaint along with relevant documents, will start the case. Can I cancel the cheque using red ink? As per the Negotiable Instruments Act, 1881, if a cheque is dishonoured by the bank due to insufficient money in the bank account of the drawer then it is a criminal offence. The issuer is required to put his signature on both the front and back of the cheque.
During this case, the transferee doesn't get the rights of the holder in due course, as long as the title of the transferor is nice, the title of the transferee is additionally smart. The Drawer: Normally or especially, the Drawer might Cross the Cheque. What is the purpose of crossing? Cross checks are also frequently detected by drawing two parallel intersecting lines. The second part Sections 124-238 deals with certain special kinds of contracts, namely contracts of Indemnity and Guarantee, Bailment, Pledge, and Agency. The open cheque, also known as the bearer cheque, is used for transactions that take place over the counter.
A crossed cheque can be credited to bank account only. If the payee decides to proceed legally, a chance is given to the drawer to pay the cheque amount immediately. Types of Cheque Crossing - Introduction A cheque could be an instrument. The assembling banker is guilty of carelessness if he credits the return of a cheque with such a crossing to the other account. It might also be as a result of being sketched or photographed by an unauthorized individual.
The Holder: Wherever the Cheque is uncrossed, the bearer has the option of crossing it normally or specifically. What is a cheque number? It possesses high risk because if someone finds it, the person can issue the cheque to themselves. The drawer can revalidate the cheque if it becomes obsolete owing to the expiration of the validity term. The bank may not be able to debit the drawer's account and may be liable to the true owner for his loss. Try this quiz on Bank Cheque Bank Check Ques.
Moreover, the cheque can be crossed specially or generally. Under this mode of fund transfer, there are three parties involved in the on-track movement of money through a written paper source. What is the difference between depositing and cashing a cheque? When a cheque is refused by Bank to pay the amount on the cheque due to some reason is called Dis-honour of Cheque. Primarily, it ensures that the funds must be transferred to the bank account only and not to encash it right away upon the receipt of the cheque. . Example: Kavish got a cheque with date specified 2 nd March but present that cheque in bank in month of September. The benefit of crossing is that it decreases the risk of unauthorized negotiables obtaining and cashing a check.
What is the punishment and penalty related to a dishonoured cheque? Banking in the New Millennium. He may cross it in places where it isn't normally crossed. The most basic method of crossing is to draw two parallel lines across the cheque's face. Can a cancelled cheque be used multiple times? What happens if a cheque is dishonoured by the bank? An uncrossed cheque or an open cheque is a cheque that has not been crossed with two parallel lines on the top left corner. Furthermore, the cheque is considered non-transferable, which means it cannot be transported to a third party. Cheque Validity A cheque's expected validity is three months from the day it is written. What is Cross Cheque A crossed cheque is any cheque which is crossed with two parallel lines.
For the aim of general crossing 2 crosswise parallel lines at the corner of the cheque are necessary. The paying banker can honor the cheque only if it's ordered through the bank which is mentioned within the crossing. But, no Negotiable Crossing takes away this vital feature. However, in special crossing 2 parallel crosswise lines don't seem to be essential, however the name of the banker is most significant. It will not be provided to the bearer in cash over the bank counter right away. It is located in the upper left-hand corner or vertically across the cheque. In simple words a self cheque is issued by Example: Puneet own the bank account write a cheque for self to physically collect money from his own account.
An Ante-dated cheque is a cheque which was filled and signed on any past day and now presented at the bank. However, the payee can sue the drawer only if the amount mentioned on the dishonoured cheque is to pay off a debt or any other liability of the drawer towards the payee. A post dated cheque is a cheque which bears a date which is yet to come is called post-dated cheque. The check's negotiability is limited by this sort of crossing. It directs the assembling banker to credit the amount of money in a cheque to the account of the receiver.