GK
BANKING AWARENESS AND SEBI
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Remain the same
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Invalid document
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Ineligible to get cash across the bank counter
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Ineligible to endorse to a person other than the payee
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Detailed explanation-1: -This type of crossing restricts the negotiability of the cheque. It directs the collecting banker that he needs to credit the amount of cheque only to the account of the payee, or the party named or his agent.
Detailed explanation-2: -It simply means that the particular cheque could only be deposited straightway into a bank account and would not be instantly cashed by a bank or by any credit institution. This ensures a level of security for the payer since it needs the funds to be handled with a collecting bank.
Detailed explanation-3: -By using a crossed cheque, you can ensure that the specified amount cannot be cashed but can only be credited to the bank account of the payee. The receiver of the amount: As only a banker secures the payment of a crossed cheque, the money received can easily be traced for whose use.