BANKING AFFAIRS

Detailed explanation-1: -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.

Detailed explanation-2: -Meaning of a/c payee (only) in English The words show that the cheque must be paid only into the account of the person to whom it is written: Crossing a cheque with a/c payee means that the cheque cannot be used by someone else.

Detailed explanation-3: -Fill out a deposit slip Fill the deposit slip by providing the necessary information asked in it. You need to enter your name as on the cheque, your bank account number, cheque amount in words and numbers, the name and branch of the bank from where the cheque is drawn and the cheque number.

Detailed explanation-4: -General Crossing – cheque bears across its face an addition of two parallel transverse lines. Special Crossing – cheque bears across its face an addition of the banker’s name. Restrictive Crossing – It directs the collecting banker that he needs to credit the amount of cheque only to the account of the payee.

Detailed explanation-5: -The format and wording varies between countries, but generally, two parallel lines may be placed either vertically across the cheque or on the top left hand corner of the cheque. By using crossed cheques, cheque writers can effectively protect the instrument from being stolen or cashed by unauthorized persons.