BANKING AFFAIRS

Detailed explanation-1: -A cross cheque is a cheque which has to be directly deposited in the bank account of the person so mentioned. It cannot be made payable over the counter.

Detailed explanation-2: -In such cheques, you have to draw two parallel lines on the top left corner of the cheque and you can write the words “Account Payee Only” or “Not Negotiable” with it. These cheques cannot be encashed at the cash counter of a bank but can only be credited to the payee’s account.

Detailed explanation-3: -Once a check is crossed, it’s impossible for the payee to uncross it. Furthermore, such crossed checks are considered non-transferable, meaning they cannot be signed over to a third party. The only action permitted is for the payee to deposit the check in an account that the payee holds in their own name.

Detailed explanation-4: -Bearer Cheque This cheque can be presented over the counter of the drawee’s bank and is payable to the one presenting it.

Detailed explanation-5: -An open cheque is a cheque where there is no crossing. Therefore, to encash the cheque no account is needed . One can encash it through the account of others. But if the cheque is crossed, then it can be encashed only through the account of the payee.