BANKING AFFAIRS

Detailed explanation-1: -A restrictive endorsement is an endorsement that limits the use of a check. Other approaches related to restrictive endorsements include: Endorsing the check to “For Deposit Only” followed by your account number. This restricts the check to being deposited into the designated account.

Detailed explanation-2: -A restrictive endorsement is a conditional guaranty of a transfer of a negotiable instrument. That is, an endorsement that takes effect only on the occurrence or non-occurrence of another act or event.

Detailed explanation-3: -If you write “for deposit only” on the back of a check made out to you and then sign your name, the check can only be deposited in your account. This is called a “restrictive indorsement, ” and it should prevent you or any other person from cashing the check.

Detailed explanation-4: -It all depends on your bank’s policies. Some banks may not allow you to deposit or cash a check made payable to someone else (a third-party check) while others may have special requirements you’ll need to meet.

Detailed explanation-5: -For Deposit Only-Restrictive Endorsement The most secure way to endorse a check is to: Write: For Deposit Only to Account Number XXXXXXXXXX. Sign your name below that, but still within the endorsement area of the check.