Crossed cheque- - SS2 Commerce Lesson Note

A crossed cheque is a type of cheque where two parallel lines are drawn across its face. This crossing indicates that the cheque cannot be cashed at the counter but must be deposited into a bank account. It adds an extra layer of security and reduces the risk of loss or theft during the payment process. There are two types of crossings in a crossed cheque:

General Crossing

When two parallel lines are drawn across the cheque without any additional instructions, it is known as a general crossing. This crossing signifies that the cheque can only be deposited into a bank account and cannot be cashed directly. The funds will be transferred from the issuer's account to the recipient's account through the banking system.

Special Crossing

In the case of a special crossing, the general crossing is accompanied by the name of a particular bank written between the two parallel lines. This specifies that the cheque should be deposited into an account held with that particular bank only. It restricts the payment to a specific bank, providing an additional level of assurance to the recipient.