BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The payee can obtain payment only through a bank account
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The payee Is compelled to open an account
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The payee will have to endorse the cheque to a bank
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None of these
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Detailed explanation-1: -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-2: -Adding a crossing to a cheque increases its security in that it cannot be cashed at a bank counter but must be paid into an account in exactly the same name as the payee or indorsee indicated on the check.
Detailed explanation-3: -General Cheque Crossing For the aim of general crossing 2 crosswise parallel lines at the corner of the cheque are necessary. Thus, during this case, the holder of the cheque or the receiver can receive the payment solely through a checking account and not over the counter.
Detailed explanation-4: –Where a cheque is crossed specially, the banker on whom it is drawn shall not pay it otherwise than to the banker to whom it is crossed, or his agent for collection.
Detailed explanation-5: -It has two parallel lines that are made on the top left of the cheque. Amount mentioned on the cheque can only be transferred to the bank account of the payee. There is no cash payment on this cheque.