GK
BANKING AWARENESS AND SEBI
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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the cheque is specially crossed in favour of Peoples Bank
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it is not a crossing as it does not contain two parallel lines
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it is an extraneous matter appearing on the cheque. Hence should be returned
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none of the above
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Detailed explanation-1: -The special crossing of a cheque indicates that the paying banker must only honour the cheque if it is presented to him by the bank mentioned at the crossing. No other person can receive the cheque.
Detailed explanation-2: -The significance of crossing a cheque is that it can only be collected from the drawee bank in the bank account and cannot be encashed by the bearer. (Negotiable Instruments Act, Sections 123 and 126) As a result, the issuer of the cheque is protected and safeguarded by the crossing of the cheque.
Detailed explanation-3: -An open cheque is one which is payable in cash across the counter of the bank. A crossed cheque is one which has two short parallel lines marked across its face. ADVERTISEMENTS: A cheque marked in this fashion can be paid only to another banker.