Can a crossed Cheque be a bearer cheque?

The bearer cheque does not contain the name of the payee and is payable to the person who presents it at the bank. In case of crossed cheque, the name of the individual is already mentioned on the cheque. So, the money is paid to the specified person only. Bearer cheques are not safe and can be misused if lost.

Which cheque is also known as bearer cheque?

order cheque
An order cheque is considered as the bearer cheque if the word ‘bearer’ is not canceled while issuing the cheque. When a cheque is issued to pay Cash it is called the cash cheque.

What is the effect of a general crossing of a cheque?

Adding a crossing to a cheque increases its security in that it cannot be cashed at a bank counter but must be paid into an account in exactly the same name as that which appears on the ‘payee’ line of the cheque (i.e. the person who has received the cheque, who is legally the “payee” and “holder” of the cheque).

Can I endorse a crossed cheque?

Crossed Cheque– A crossed cheque is the one the proceeds of which can only be deposited into the payee’s account. However, such cheques can be endorsed by the payee to a third party; the next person can further endorse it to someone else.

Who Cannot cross the Cheque?

126 of the Negotiable Instruments Act states that crossed cheques are usually only paid to a banker. For Special Crossing- A cheque crossed in particular should only be paid to the banker to whom it is crossed or who is a collection agent.

Can a foreigner cross a cheque?

Both bearer and order cheques can be crossed. The format and wording vary between countries, but generally, two parallel lines and/or the words ‘Account payee’ or similar may be placed either vertically across the cheque or in the top left-hand corner. The payment of such a cheque can be obtained only through a banker.

Can a cheque be transferred?

The three types of cheques mentioned above are referred to as “transferable”. This means that those cheques can be passed on (transferred) by the person to whom the cheque is made out (the “payee”) to other persons, who then become entitled to receive payment on the cheque.

Are Cheques transferable?

Yes, Account Payee crossing renders the cheque ‘not transferable’. Instructions of drawer or holder is clear – to be credited to the account of payee. As a fact, Account Payee is not defined in any Indian law – it is by bankingp practice.

Can a payee cross a cheque?

No, the recipient of the cheque (sometimes called the “payee”) cannot remove a crossing from a cheque nor can the cheque be transferred over to a third party. It cannot be cashed over the counter by the payee; it must be paid into an account in the same name as that appearing in the payee line of the cheque.

What is the difference between a bearer cheque and crossing cheque?

In bearer cheque, money is directly given to the baerer. But in crossing cheque, money is directly deposited in the respective person account whose name is mentioned in the cheque. Bearer cheque is less safer than Crossing cheque but crossing cheque is safer than bearer cheque.

What is the general crossing on a cheque?

In the case of general crossing on the cheque, the paying banker will pay money to any banker. For the purpose of general crossing two transverse parallel lines at the corner of the cheque are necessary. Thus, in this case, the holder of the cheque or the payee will receive the payment only through a bank account and not over the counter.

What is the difference between crossing a cheque and over the counter?

While a crossed cheque is not payable over the counter but shall be collected only through a banker. The amount payable for the crossed cheque is transferred to the bank account of the payee. Types of cheque crossing are General Crossing, Special Crossing and Restrictive Crossing.

How do you cash an open cheque without a cross?

An open cheque (type of without crossed) It’s a bearer cheque to in-cash the amount. You can get the payment to the payee to the paying bank on the counter side. If you are marking any cross then it’s good to go with cash counter withdrawal process.