banking
Types of Cheque Crossing/ Types Of Cross Cheque:
General crossing
Special crossing
Restrictive crossing
General Crossing: A cheque is said to be crossed generally when it bears across its face any of the following:
Two transverse(cross) parallel lines.
Two transverse parallel lines with the word “And Company” or “And Co”.
Two transverse parallel lines with any abbreviation of the word “& Company”.
Two transverse parallel lines with the words “Not Negotiable”.
Two transverse parallel lines with the words “Account Payee Only”.
The effect of general crossing is that the payment of the cheque will not be made at the counter, it can be collected only through a banker. The direction is that, the paying banker should not pay the cheque at the counter. It should be paid only to a fellow banker.
Special Crossing: It is a cheque in which the name of the bank and at time bank with branch name is written between the two parallel lines like Habib Bank Ltd , Mcb (Saddar branch) hence it can be paid to that specific banker only. Inclusion of the name of a banker is essential in special crossing . In case of special crossing the paying bank shall make payment only to the bank whose name is written cheque.
RESTRICTIVE CROSSING: Besides the two statutory types of crossing discussed above, there is one more type of crossing namely, restrictive crossing. This type of crossing has been recognized by usage and custom of the trade. In a restrictive crossing the words 'Account Payee' or Account Payee Only' are added .The effect of restrictive crossing is that the payment of the cheque will be made by the bank to the collecting banker only for the account payee named.
Difference between General and Special Crossing
General Crossing
Special Crossing
1. Drawing of two parallel transverse lines is a must.
1. Drawing of two parallel transverse lines is not essential.
2. Inclusion of the name of a banker is
General crossing
Special crossing
Restrictive crossing
General Crossing: A cheque is said to be crossed generally when it bears across its face any of the following:
Two transverse(cross) parallel lines.
Two transverse parallel lines with the word “And Company” or “And Co”.
Two transverse parallel lines with any abbreviation of the word “& Company”.
Two transverse parallel lines with the words “Not Negotiable”.
Two transverse parallel lines with the words “Account Payee Only”.
The effect of general crossing is that the payment of the cheque will not be made at the counter, it can be collected only through a banker. The direction is that, the paying banker should not pay the cheque at the counter. It should be paid only to a fellow banker.
Special Crossing: It is a cheque in which the name of the bank and at time bank with branch name is written between the two parallel lines like Habib Bank Ltd , Mcb (Saddar branch) hence it can be paid to that specific banker only. Inclusion of the name of a banker is essential in special crossing . In case of special crossing the paying bank shall make payment only to the bank whose name is written cheque.
RESTRICTIVE CROSSING: Besides the two statutory types of crossing discussed above, there is one more type of crossing namely, restrictive crossing. This type of crossing has been recognized by usage and custom of the trade. In a restrictive crossing the words 'Account Payee' or Account Payee Only' are added .The effect of restrictive crossing is that the payment of the cheque will be made by the bank to the collecting banker only for the account payee named.
Difference between General and Special Crossing
General Crossing
Special Crossing
1. Drawing of two parallel transverse lines is a must.
1. Drawing of two parallel transverse lines is not essential.
2. Inclusion of the name of a banker is