Jagjeet Singh (ca-final) (174 Points)
17 January 2011Whether Generally Crossed Cheque Can Be Cashed At the Counter Of COLLECTING BANK?
As Per My Opinion After Checking A/c Of Payee In Collecting Bank : Coll. Bank Pay THe Cheque Whereas In Case Of A/cpayee Cheque Cheque Can NOt Be Cashed But Can Only Be Credited In The A/c Of Payee
MOHIT MAHAJAN
(LCS, ACA)
(2050 Points)
Replied 17 January 2011
In my opinion even crossed cheque can't be paid at counter, it has to be paid into the a/c.
The difference between crossed cheque and a/c payee cheque is that a crossed cheque can be further endorsed whereas an a/c payee cheque will be paid in a/c of said person only.
CA CMA CS Ram Pavan Kumar Melam
(CA)
(6980 Points)
Replied 17 January 2011
A cheque is either “open” or “crossed”. An open cheque can be presented by the payee to the paying banker and is paid over the counter. A crossed cheque cannot be paid across the counter but must be collected through a banker.
A crossing is a direction to the paying banker to pay the money generally to a banker or to a particular banker, and not to pay otherwise. The object of crossing is to secure payment to a banker so that it could be traced to the person receiving the amount of the cheque. To restrain the negotiability, addition of words “Not negotiable” or “Account Payee Only” is necessary. A crossed bearer cheque can be negotiated by delivery and crossed order cheque by endorsement and delivery. Crossing affords security and protection to the holder of the cheque.
Modes of crossing: There are two types of crossing which may be used on cheque, namely (i) General, and (ii) Special. To these may be added another type i.e. Restrictive crossing.
Examples of crossing
|
General Crossing |
Special Crossing |
|
Blank crossing |
“Axis bank” without crossing |
|
“& Co” crossing |
“Axis Bank” with crossing |
|
“Not Negotiable” crossing |
“Not Negotiable”
“Axis Bank” with or without crossing |
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