What is a Crossed Cheque?

The crossed cheque is any type of cheque that is crossed with two parallel lines across the whole cheque or at the top-left corner of the cheque. The crossed cheque meaning is simple i.e. a negotiable instrument specifying a general instruction that cheque has not yet deposited in the bank account and it cannot be converted into cash immediately via bank or any other financial institutions.

Types of Crossing Cheque

In India, there are four types of crossing cheque. Below given are different types of crossed cheque:

General Crossing

Under General Crossing, two transverse parallel lines are crossed across the face of the cheque and it bears an abbreviation “& Co.” between the two parallel lines. Along with this, it also bears the words ‘not negotiable’ between the two parallel lines.

Special Crossing

When a special crossing is made to the cheque, two parallel lines are crossed and the name of the banker is written between the two parallel lines. Along with this, it bears words “not negotiable” between the parallel lines. It will only be paid when it is presented by the banker.

Restrictive Crossing

Under this type of crossed cheque, cheque can be transferred but cannot be negotiated. It bears words “A/c Payee” or “A/c Payee Only” between the parallel lines. The proceeds of the cheque are credited to the account of the payee only. This type of crossed cheque is also called Account Payee Crossing.

Non-Negotiable Crossing

It bears the word “Not Negotiable” between the parallel lines. The meaning of this type of crossed cheque is that it cannot be transferred and the transferee’s position will not be superior to the transferor’s title.

Importance of Crossing a Cheque

Mentioned below are some of the importance of crossing a cheque:

1. Individuals are not eligible to draw cash when you own a cross cheque at a bank desk. Hence, it protects both the parties.
2. In case of Restrictive Crossing, the crossed cheque is transferred to payee’s account only.
3. Crossing of cheque prevents frauds in case cheque is missing or damaged.
4. It protects the issuer of the cheque from fraud.

How to Cross a Cheque?

To cross a cheque, follow the below mentioned steps-

1. Tear out the cheque leaf from your cheque book.
2. Draw two transverse parallel line across the face of cheque.
3. Enter any details such as “A/c payee” or “Not Negotiable” or as the case may be.
4. Now deposit it at the bank desk.

Also, read more articles related to Cheque:

Crossed Cheque : FAQs