Types of Crossing of Cheques

Since a crossed cheque can only be deposited in the bank, it cannot be used by unauthorized individuals. It can be tracked by the bank and the tracking information is shared with the payee. A cheque is drawn on the bank where the account holder has an account.

Cheque fraud is an intentional attempt to gain money unlawfully by writing a bad cheque, forging a cheque in another person’s name, or fabricating a cheque. It is a criminal activity, and sophisticated frauds can go undetected for years. An open cheque is a type of leaf that a holder can use to get payment at a bank or deposit in his own account. It is also possible for the holder to issue this cheque to someone else.

A bounced cheque is one that the bank has refused to honour because the drawer did not maintain sufficient funds in the account to have the cheque honoured. Every cheque carries a unique 6-digit number inscribed on the bottom of the cheque leaf. This number is known as the cheque number, and it is used to identify the status of the cheque. The cheque number is followed by a MICR number and a portion of the account number with which the account number is linked.

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A crossed cheque can only be deposited into the payee’s account. In case this cheque is misplaced, lost, or stolen it cannot be misused. Post-dated cheques are the cheques where the date present is later than the original date that the cheque was issued.

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You would write the word ‘’self’’ in the space for the drawee’s name on the cheque. A self-cheque is for use in situations when you want to withdraw money from your own account in cash. A cheque can be defined as a document that instructs the bank to pay a specific amount to the person whose name is written on the cheque. A cheque is a negotiable instrument governed by the Negotiable Instrument Act, of 1881 i.e. it promises its bearer a payment of the specified amount on furnishing the document to the banker.

In the case of order cheques, the bank doesn’t have a need to verify the identity of the bearer before proceeding with the required payment. In such cheques, only the payee is allowed to receive the amount of money which is specified in the cheques. The ‘or bearer’ mark on the cheque is struck off in order for cheques to ensure only the payee receives the amount specified in the cheque. • If the post-dated cheque is issued before the mentioned date on the cheque. • You can issue cheques to other parties since they are negotiable instruments. Issued by a bank, a traveller’s cheque can be cashed by the payee at another bank in another country.

1. An open cheque does not have crossed lines, and hence, is also called an uncrossed cheque.
2. A bounced cheque is a cheque rejected by the bank for not maintaining enough balance in the bank account to initiate the payment process.
3. A crossed cheque is a type of cheque where the issuer makes two slanted parallel lines on the top left corner of the cheque, with the word ‘a/c payee’ written.
4. So, individuals must be cautious when filling out details.
5. Banker’s cheques are only valid for three months, however, post their validity period they can be revalidated if certain conditions are fulfilled.
6. However, IDFC FIRST Bank follows the zero-fee banking notion, where the issuer is not charged any fee if their cheque gets bounced for some unavoidable reasons.
7. The main reason to use the provision of a crossed cheque is its low-risk factor.

Written by Techy Khushi

In this blog, we will discuss what a crossed cheque is, how it works, its benefits, and why it is an important tool to initiate safe transactions. There are several different types of cheques, each with its own unique features and uses. By understanding the different types of cheques, you can choose the best option for your needs.

Utilize this secure payment instrument to safeguard your financial interests and keep your transactions hassle-free. Crossing of a cheque involves drawing two parallel lines, usually across the top left types of cheque in india corner, with or without additional wording. It acts as an instruction to the bank (drawee) on how the cheque should be managed.

1. Banks take utmost care when processing cheque transactions for security reasons.
2. It is also considered the safest form of crossing and is widely used in the market.
3. To find the cheque number, you can look at the bottom left corner of your cheque leaf.
4. The payee should also send a notice to the drawer stating that the amount should be paid within 15 days of the notice being received by the drawer.
5. • Online mode – You can log into your net banking account and navigate to the services section to request a new chequebook.
6. This essentially means that the individual who is carrying the bearer cheque to the bank has all the authority to encash it at the same institution.

• Several bank digital kiosks also process cheque transactions digitally so, you don’t require to visit the bank always. A traveler’s cheque is used when traveling in order to avoid carrying large amounts of cash so as to maintain greater safety and security. It can be encashed when traveling abroad where foreign currency is required. Banker’s cheques are cheques that are issued by the bank so it guarantees payment.

A bounced cheque is a cheque rejected by the bank for not maintaining enough balance in the bank account to initiate the payment process. To avoid cheque bounce, individuals must ensure they have adequate money in their bank account. Several banks also charge a cheque bounce penalty for the same. However, IDFC FIRST Bank follows the zero-fee banking notion, where the issuer is not charged any fee if their cheque gets bounced for some unavoidable reasons.

• Bank branch – Alternatively, you can visit the bank branch during active hours and apply for a new chequebook. • A cheque must be signed before submitting otherwise it is considered invalid. A Prepaid Check is a Check Type available when entering invoices in Accounts Payable to stipulate the form of payment to the vendor. A Prepaid Check is a check that was written manually and is now being entered into the system, or will be printed immediately after entering the invoice. The fraud detection and prevention solutions are applicable to finance, banking, retail, telecom, and e-commerce sectors. Get answers to the most common queries related to the BANK Examination Preparation.

A cheque which has all the fields blank except for the drawer’s signature, then it is called a blank cheque. Endorsee – The endorsee is the party to whom the payment rights are passed from the payee (the endorser). Cheque payment includes multiple parties, and the payment processing takes place in chronological order. One must follow all the steps precisely when filling it out.