The document discusses different types of crossing that can be done on a cheque, including general crossing, special crossing, and restrictive crossing. General crossing involves drawing two parallel lines on the cheque and prevents it from being cashed over the counter. Special crossing names a specific bank for payment and is more secure than general crossing. Restrictive crossing adds words like "account payee only" making the cheque non-transferable and ensuring payment is credited only to the payee's account. The drawer, holder, or banker can cross a cheque depending on circumstances. Crossing can be cancelled by the drawer writing "payment be made in cash" and signing.

1. Crossing OF CHEQUE
SUMMITED BY
PIYUSH JAIN
(MCOM - 2 SEMESTER)
SUMMITED TO
DR. NIDHI KHURANA
(DEPREMENT OF COMMERCE)
ST. ALOYSIUS’ COLLEGE
(AUTONOMOUS)

2. MEANING OF CROSSING

3. CHARACTERISTICS OF CROSSING
• Crossing of a cheque means “Drawing Two Parallel Line’’ across the
face of the cheque. Thus, crossing is necessary in order to have
safety.
• Crossing of the cheque affect the mode of payment.
• Crossed cheque must be presented thought the bank only because
they are not paid at the counter.
• crossing is a popular device for protecting the drawer and payee of
a cheque.

4. TYPES OF CROSSING
Types of crossing
General crossing
Special crossing
Restrictive crossing

5. Types of crossing of cheque
 General Crossing
• The drawing up of two simple parallel lines on the face of the
cheque at the top hand corner with or without the words and
co., not negotiable or account payee only is known as general
crossing.

6. • General crossing
The effect of general crossing is that the crossed cheque
cannot be paid at the counter of the bank. Its payment can
only be deposit into the payee’s account only

7. Types of crossing of cheque
*SSpecial crossing
• A cheque is deemed to be crossed especially when it bears across its face
the name of the banker either with or without the words ‘NOT
NEGOSIABLE’.
• Effect of this is that payment will be done to specified banker, and is more
safe than general crossing. The payment can by only be made to the bank
named therein the cheque.

8. Restrictive crossing
• In such a crossing the words ‘Account Payee only’ or ‘payees
Account only are added. The addition of these words make the
cheque non-transferable.
Effect -:
When a cheque is crossed “Account payee only”, payment
should be credited by the bank only to the account of the payee.

9. Who may Cross the Cheque
 THE DRAWER : While issuing a cheque the drawer can cross
the cheque generally or specially.
THE HOLDER : If the cheque is not crossed, the holder can
cross the cheque generally or specially.
THE BANKER : If the cheque is not crossed and send to the
bank for collection, banker can cross the cheque generally.

10. Cancellation of crossing of a cheque
 In case the drawer of a cheque wants to cancel
the crossing of a cheque he has crossed, he may
do so by cancelling the parallel lines and writing
the words “Payment be made in cash” and singing
below it.