BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Often cheques are crossed with two parallel transverse lines and in between the two parallel lines the words “A/C Payee” or “A/C Payee only” are written. This means that the proceeds of the cheque are to be credited to the account of the payee only. This type of crossing is also “restrictive”.

Detailed explanation-2: -General Cheque Crossing In general crossing, the cheque bears across its face an addition of two parallel transverse lines and/or the addition of words ‘and Co.

Detailed explanation-3: -What Is a Crossed Check? A crossed check is any check that is crossed with two parallel lines, either across the whole check or through the top left-hand corner of the check. This double-line notation signifies that the check may only be deposited directly into a bank account.

Detailed explanation-4: -Special Crossing According to section 124 of the Negotiable instruments Act, For a cheque to be deemed to have been crossed, the banker’s name had to be added across the face of the cheque. In case of a special crossing, a cheque must not be crossed by drawing two parallel lines.

Detailed explanation-5: -An account payee cheque is a type of crossed cheque increases the security on the cheque. For this type of crossed cheque, you must write “A/c payee only” in between the crossed lines. The payee cannot endorse the cheque. Thus, the cheque amount can only be deposited in the payee account.