I know whoever have bank account might have came across these two words while writing cheque or interacting with the bank. But do you know the difference between these two and how and at what time one must opt for these two facilities of writing cheque? Before proceeding further, first let us understand the parties involved in cheque transactions. There are mainly three parties involved in cheque transactions and are as below.
Therefore, he issues cheques of his bank account.
Crossing of cheques
The drawee is your bank. So drawer is giving instruction to drawee to pay an amount mentioned on the checque to the person named or to the bearer of the checque. His name will be mentioned on cheque, so he is an authorized person to receive cash. In such case drawer himself becomes payee.
From above image, you notice how to change the normal cheque leaf into crossed cheque. Once you cross the cheque and mention the payee name in above example, it is my name then I can only encash this cheque by depositing to my Bank Account. For example, in the above example payee name is mine. Instead of cashing it to my bank account I can further endorse the cheque to anyone, for example to Mr.
Satish either can encash this cheque or he can endorse to someone, for example to Mr. The payee can further endorse or cash it according to his wish.
Rohan can sue Mr. Satish and in return Mr. Hope it will be helpful for you.
Hi Sir, i happen to get a rented vehicle last week from car rental vendor. Is it risky?
What is Account Payee Cheque?
Or is it fine to let it go and relax? Please suggest! Dear Hameed, Is it in the name of your wife? If so, then yes it will be encahsed by your wife. Now on my records it shows that the amount is credited to Mr Y, which I think because he endorsed the cheque.
Does this means that Mr X is not at all involved in this transfer, meaning as per the bank transaction is from me to Mr Y.
Specimen of crossed cheque book
If yes, is in it a loop hole for tax evasions and stuff like that. The cheque is written in the name of Mr.
X but not in the name of Mr. Called the bank to enquire about it and they say it could happen if it is a joint account.
Crossing a Cheque
Please throw some light. Dear Sagar, I think you no need to worry. Even if Mr. X claim that he not received the money, then you can show this transaction where he issued in return to Mr. Y by endorsing on cheque.
Crossing and Types of Cheque Crossing
My Bank account is in SBI. Query- I want to endorse this cheque to Mr. A having Bank account in Vijaya Bank. Query- Sir, Can i endorse the Cheque received by Mr. X to Mr.
Pls tell the procedure regarding this… Thanks a lot sir.. Dear Chirag, It is better to endorse the same once the first party mention it account payee. Dear Sir, If the first party mentions Account Payee on the cheque, then I will not be able to make any endorsement of Account Payee cheque. As now only Crossing is present on the cheque can I endorse the cheque?? Pls clarify. Account Payee is not written in it. So, it is Crossing only.
What is Account Payee Cheque and Crossed Cheque?
My query is- Pls tell whether ONLY name of the person to whom i want to endorse the cheque should be written on back of the cheque or any other detail also required? Sir I have an account which neither crossed nor account payee…….
Sir i am owner of company i received payment order from other party its on my personal name and payees account only stmap. Dear Bing, Is it account payee or what?
Please read above post and cross check the same with that cheque. Sir, My Friend Suyash Agrawal has got a cheque from his client, but on cheque surname is written as Agarwal instead of Agrawal.
Will it be cleared or bounced? I have my account in Canara Bank. Can I deposit the same in my Canara Bank Account? Is it possible?
What is the amount limit for non-crossed cheques? I have to pay a person Rs 10Lakh. I now have the money in my account and can give him a cheque. He is insisting to give cheque without account crossing or as cash. Is it fine to issue a non-crossed cheque to him?
Also any consequence of withdrawing 10L and giving it to him in cash? Deepak-As per my knowledge, there is no such limit.
However, for safety purpose, it is always best to issue Account Payee Cheques only. I received an order cheque and sent it through my friend for depositing into my account.
My friend returned with the cheque and said the bank is asking for my signature on the back of the cheque or on the deposit slip. They even quoted Sec 6 of NI Act which states cheque is not expressed to be payable otherwise than on demand and a demand should be there in the form of signature as stated above.
Sriniwas-But in many case banks allows other persons to deposit also easily. I am not sure why they are so rigid here. Thanks for the reply. And I think this may be a reason. And to my surprise the standard ch return memo of RBI too is having the same reason. Please advise. My name is mentioned in it.
What is Crossed Cheque?
Sir I received a cheque from my insurance company in my axis bank acc no. But unfortunately i hv closed that acc.
So can I deposit tht cheque in my sbi acc? Because i hv a acc in sbi now. Shreya-If on the cheque the payee is mentioned as your account number of Axis Bank, then it is not possible.
However, your name is mentioned in payee, then you can deposit in SBI Account. Sir if someone issued a crossed cheque and in the payee writen as self and also signed on the back side by the drawer….
Karthick-Non negotiable are exactly like Account Payee cheque. But further endorsement will not be possible. Hi sir I have received a cheque in the name of V.
Ranjitha, but the account is in the name of Ranjitha. But my signature is V. Ranjitha will they accept the cheque drop.? I want to know once i will collect the cheque from them, Can i again submitting the same by adding my name or I need to again take the cheque.
Rishi-1 It means to whom the payment has to be payable. Sir I went to bank for payment through cheque everything was correct except the date format. The banker refuses me to give the payment from my own account. Shall I write a complaint against that banker. But sir why?
Deepika-What I understood from his question is that he want to deposit the cheque in some other Bank branch of HIS but not others. Maybe I was wrong while reading his full comment. I found this for a specific search. Thanks for addressing this.