Open cheque[ edit ] An open cheque is a cheque that is not crossed on the left corner and payable at the counter of the drawee bank on presentation of the cheque.
What is a crossed cheque? You might have noticed two slanted parallel lines at the left upper corner of the cheque. This means the payee is not authorized to encash the cheque directly in the bank or any other credited institution but can credit the amount to his bank account.
This adds a security to the cheque and must be followed by everyone. When there are no crossed lines on the cheque it is called as an open cheque. Open cheques can be encashed at the counter itself. No restrictions apply for open cheques. Significance of Crossed cheque Also, crossed cheque has one another significance.
Once a cheque leaf is crossed, the payee can further the cheque. Thus the payee can either credit the amount of the cheque or endorse it. This is done by writing the name of the person with the payee signature behind the cheque.
Hence, someone else can credit the amount or further endorse the cheque. For example, someone has drafted a crossed cheque to me. I have two options. Encash the cheque by submitting it to the drawee. So, I can write Mr. XYZ behind the cheque with my signature to endorse the cheque.
XYZ can either credit the amount in his account of furthermore endorse the cheque to Mr. This means there is no restriction on who can endorse the cheque. In the case of bearer cheque, the bank can encash the cheque in favor of the person who presents the cheque. Crossed cheque cannot be encashed.
Types of crossed cheques There are 2 types of crossing which can instruct the bank to act accordingly with the amount of the cheque. General crossing This is the most general type of crossing where the drawer simply puts two parallel lines at the upper left corner of the cheque.
You cannot encash a crossed cheque over the counter. Restrictive or special crossed cheque Special crossed cheque is where you write a set of instruction in between the crossings.
In such cases, the drawee can pay on in the account of the payee or can only credit the amount through State Bank of India SBI must act as the drawee. However, it is not compulsory to write so. This will instruct the bank whom to pay the amount of the cheque.
Account payee cheques This type of crossed cheque increases the security on the cheque. The payee cannot endorse the cheque. Thus, the cheque amount can only be deposited in the payee account. Thus, it protects the misuse of the cheque.sir i got cheque of rs lcs and it is a multicity cheque of mumbai sbi bank and i deposited the cheque in lucknow sbi branch bcoz my account is in lucknow sbi leslutinsduphoenix.com sir when i deposited the cheque i was not crossed with two lines on above left side of the cheque i only write name of account holder and account no.
on the voucher with. 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.
The format and wording varies between countries, but generally, two parallel. Issuing a Cheque Write the Full Name of the payee as per the payee's bank records on the Pay line.
Cross out the Bearer word on the cheque and double cross on the top left corner of the cheque if it has to be paid only to the said payee. What is Account Payee Crossed Cheque & Bearer Cheque. May 28th, , Pubali Mazumder, Significance of Crossed cheque.
For this type of crossed cheque, you must write “A/c payee only” in between the crossed lines. The payee cannot endorse the cheque. Thus, the cheque amount can only be deposited in the payee account. What is Account Payee Cheque and Crossed Cheque? Last updated: November 17, What is Crossed Cheque?
From above image, you notice how to change the normal cheque leaf into crossed cheque. I didn’t give the cheque to my dad. when I asked him to write another cheque he says as per rule we should not write another cheque .
Frequently Asked Questions on Cheque Usage. General Cheque Issuance; General Cheque Deposit; Write "Cash" on the 'Pay' line; Do not cross the cheque or cross out the 'Bearer' word.
you will receive an Image Return Document (IRD) instead of the cheque. The IRD serves as a notice of dishonour and replaces the original cheque.