What is the difference between crossed cheque and uncrossed cheque?

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. A crossed cheque can only be cashed through a bank of which the payee of the cheque is a customer.

What is the difference between cheque and crossed cheque?

An open cheque is the bearer cheque. It is payable over the counter on presentment by the payee to the paying banker. While a crossed cheque is not payable over the counter but shall be collected only through a banker. The amount payable for the crossed cheque is transferred to the bank account of the payee.

What is difference between cross cheque and account payee cheque?

This crossed cheque is no more a bearer cheque where anyone can negotiate and get payment across the counter. In case of a crossed cheque, the payee is free to make further endorsements. But, the A/C payee cheque cannot be further endorsed.

What is a uncrossed cheque?

1. (of a cheque, etc) not crossed or with two parallel lines drawn across the face so that it can only be paid into a bank account. He wrote her an uncrossed cheque.

What is a crossed cheque and the purpose of it?

A crossed cheque is a cheque that has been marked specifying an instruction on the way it is to be redeemed. A common instruction is for the cheque to be deposited directly to an account with a bank and not to be immediately cashed by the holder over the bank counter.

What are the advantages of crossed cheque?

The benefits of a crossed cheque is as follows: Crossing of a cheque makes it difficult for a wrong person to get payment of the cheque. This is because, crossing is a direction to the paying banker to pay the amount mentioned in the cheque to the account of the payee and not across the counter.

Which cheque is known as account payee cheque?

crossed cheque
A crossed cheque is also called an account payee cheque. It is a bearer’s cheque which has the words ”account payee” written on the top left-hand corner enclosed in two parallel lines. It is the safest cheque to issue because only the name written on the cheque will have the money transferred to their account.

How do I cross check a cheque?

Cross your cheque appropriately Cross the cheque by drawing two parallel lines across the top left-hand corner of the cheque. Cancel “or bearer” on the cheque and add “Account Payee Only” (or “A/C Payee Only”).

How and why is cheque crossed?

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 that which appears on the ‘payee’ line of the cheque (i.e. the person who has received the cheque, who is legally the “payee” and “holder” of the cheque).

What are the different types of crossing cheque?

Types of Cross Cheque

• General Crossing. Special or Restricted Crossing (Section 124) In the case of special crossing, the cheque bears the name of the bank, either with or without the words ‘not negotiable’.
• Special Crossing. Not negotiable crossing (Section 130)
• Non- Negotiable Crossing. Amount Payee Crossing.