General Crossing and Special Crossing in cheques

1. General crossing: Section 123 of the Act refers to general crossing.

Where a cheque bears across its face two traverse lines with or without the words or the words ‘not negotiable, the cheque is said to have been crossed generally. Where a cheque is crossed generally, the banker shall not pay it, otherwise than to the banker” (Section 126).

Generally, cheques are crossed when

1. There are two transverse parallel lines, marked across its face or
2. The cheque bears an abbreviation "& Co. "between the two parallel lines or
3. The cheque bears the words "Not Negotiable" between the two parallel lines or
4. The cheque bears the words "A/c. Payee" between the two parallel lines.

A crossed cheque can be made bearer cheque by cancelling the crossing and writing that the crossing is cancelled and affixing the full signature of drawer.

Specimen of General Crossing ↓

2. Special crossing: Section 124 of the Act refers to Special crossing.

Where a cheque bears across its face in addition to the name of the banker either with or without the words or the words ‘not negotiable, then the cheque is said to have been crossed specially. The object of special crossing is to direct the banker to pay the cheque only if it is presented through the particular bank mentioned.

When a particular bank's name is written in between the two parallel lines the cheque is said to be specially crossed.

Specimen of Special or Restrictive Crossing ↓

In addition to the word bank, the words "A/c. Payee Only", "Not Negotiable" may also be written. The payment of such cheque is not made unless the bank named in crossing is presenting the cheque. The effect of special crossing is that the bank makes payment only to the banker whose name is written in the crossing. Specially crossed cheques are more safe than a generally crossed cheques.

 General Crossing and Special Crossing in cheques

 What is a promissory note? What are the essentials of Promissory Notes

 What is a bill of exchange?

 Essentials of a bill of exchange

 Characteristic of a Bill of Exchange

 The procedure for transfer a bill of exchange-

 Difference between a promissory note and a bill of exchange.

 Dishonour of cheques

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