Professional Documents
Culture Documents
Crossing of Cheques Banking
Crossing of Cheques Banking
Tanaya Ketkar
FYBCOM Batch 2
Roll no-265
Introduction
• In the business world negotiable instruments are
important instruments of credit. Negotiable instruments like
cheque, bills of exchange and promissory notes play an
important role for making payments and discharging
business obligation. A negotiable instrument is a transferable
document. In India the transactions relating to negotiable
instruments are governed by the negotiable instruments act
1881. Bank collect bills of exchange and engage in purchase
and discount of the cheques and bills or make advances
against them. A trader can issue any of the negotiable
instruments to another trader who may get the amount
collected through the bank.
This Photo by Unknown Author is licensed under CC BY-SA
1.Bearer cheque
2.Order cheque
3.Crossed cheque
Some other types of cheques are :
General crossing when a cheque bears across its face and additional
of words ‘and company’ or any abbreviation thereof between 2
parallel transverse lines or of 2 parallel transfer lines simply either
with or without the words not negotiable that additional shall we
deemed as a crossing and the cheque shall be deemed as crossed
generally.
Special crossing
Where a check bears across its space, and addition of name of a
banker either with or without the words ‘not negotiable’ ,that
addition shall we deemed as a crossing and the cheque shall be
deemed as crossed specially and to be crossed to that banker
Restrictive and not negotiable crossing: