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What are the features of special crossing?
In special crossing, the cheque bears across its face an addition of the banker’s name, with or without the words ‘not negotiable’. In this case, the paying banker will pay the amount of cheque only to the banker whose name appears in the crossing or to his collecting agent.
What is special crossing?
Special Crossing: A cheque in which the name of the banker is written, across the face of the cheque in between the two transverse parallel lines, with or without using the word ‘not negotiable’. This type of crossing is called a special crossing.
What are the special features of cheque?
Features of Cheque
- Cheques can be issued against savings or current accounts.
- A cheque is always drawn on a specified banker.
- It is an unconditional order.
- The payee of a cheque is fixed and certain and cannot be changed.
- The payment will only be made in the name of the payee/beneficiary.
What is crossing types of crossing?
Types of Cross Cheque
- General Crossing. Special or Restricted Crossing (Section 124) In the case of special crossing, the cheque bears the name of the bank, either with or without the words ‘not negotiable’.
- Special Crossing. Not negotiable crossing (Section 130)
- Non- Negotiable Crossing. Amount Payee Crossing.
What is account payee crossing?
The ‘A/C Payee Only’ or ‘A/C Payee’ crossing: This crossing is a protection against fraud and indicates that the cheque must be paid in to an account in the name of the payee exactly as that name appears on the cheque. This crossing is the only crossing to carry statutory force wherever it is present.
Why is a cheque crossed?
Most commonly, crossed checks ensure that a bank strictly deposits the funds into an actual bank account. This provides a level of security to the payer because it requires that the funds be handled through a collecting banker.
What is the benefit of special crossing?
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.
What are the elements of cheque?
The four main items on a cheque are:
- Drawer: the person or entity whose transaction account is to be drawn.
- Payee: the person or entity who is to be paid the amount.
- Drawee: the bank or other financial institution where the cheque can be presented for payment.
- Amount: the currency amount.
What are the two types of Cheques?
Based on these essentials, we explore the different types of cheques in India.
- Bearer Cheque.
- Order Cheque.
- Crossed Cheque.
- Open cheque.
- Post-Dated Cheque.
- Stale Cheque.
- Traveller’s Cheque.
- Self Cheque.
What is account payee?
An account payee cheque is a type of cheque which can be deposited in the account of the payee (the party to whom the final payment is supposed to be made and whose name is mentioned on the cheque). It cannot be endorsed to anyone else. Q. You should write “account payee” or “A/C payee” between the lines.
What’s the difference between special crossing and restrictive crossing?
Special Crossing – cheque bears across its face an addition of the banker’s name. Restrictive Crossing – It directs the collecting banker that he needs to credit the amount of cheque only to the account of the payee. Non-Negotiable Crossing – It is when the words ‘Not Negotiable’ are written between the two parallel transverse lines.
What makes a special crossing of a cheque?
However, in special crossing two parallel transverse lines are not essential but the name of the banker is most important. This type of crossing restricts the negotiability of the cheque. It directs the collecting banker that he needs to credit the amount of cheque only to the account of the payee, or the party named or his agent.
Which is a distinguishing feature of simple diffusion?
Simple Diffusion. Diffusion is one of several transport phenomena that occur in nature. A distinguishing feature of diffusion is that it results in mixing. Diffusion is the movement of a substance from a region of high concentration to a region of low concentration.