Who can do the crossing of a cheque?
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Who can do the crossing of a cheque?
The crossing of the cheque can be done by three parties which are as follows; the drawer, the holder and the banker. The drawer of the cheque has the power to cross a cheque in both ways i.e. general as well as special crossing.
When can bankers honor Cheques?
The cheque must be presented within a reasonable time after the ostensible date of its issue. If the cheques are presented after six months after the ostensible date of issue it will be considered as stale cheque. A cheque must contain the date and banker is not bound to honor the undated, postdated or a stale cheque.
Who among the following Cannot cross the cheque?
| Q. | Who among the following cannot cross a cheque? |
|---|---|
| B. | Holder |
| C. | Banker |
| D. | Foreigner |
| Answer» d. Foreigner |
What are the precautions of a banker before honoring a cheque?
Before honoring the cheque, the banker must verify whether the cheque presented to him for payment is an open cheque of a crossed cheque. If it is an open cheque, he should make the payment across the counter. If it’s a crossed cheque, he should pay it only when it’s presented through a bank.
What should the paying banker consider to honor cheque?
Date of the cheque: If an undated cheque is presented, a bank must refuse to honor or, either drawer/payee can fill in the date before it’s presented. If a cheque is ante-dated, it may be paid if it has hot become stale by that time. If a cheque is post-dated, he should honor it only on its due date.
What are the different types of crossing Cheques?
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.
How do I submit a crossed Cheque?
You notice that along with crossing two lines at the corner you also need to write as “A/C Payee Only”. If you do so, then one can’t endorse the same cheque to others. So in the above example, the cheque must be encashed by depositing to payee account (In the above example it is in my name).
Is crossed Cheque and account payee cheque same?
To write an account payee cheque, you have to cross two lines on the left corner of the cheque and write “A/C payee only” between the two lines. Remember, if you simply cross the cheque and do not mention the words “account payee”, it will become a crossed cheque and not an account payee cheque.