The term “Crossing a cheque”Â refers to the action where the person issuing the cheque makes two diagonal lines on the top left corner of the cheque. This means that this cheque can be paid only into an account and not to a person who wants to encash it to direct cash. The person to whom the cheque is issued, must deposit it into his account if he wants the money. This is a safety feature that would come in handy in case of stolen or lost cheques. We can track who used the cheque using the deposit details.
Crossing is a popular device for protecting the drawer and payee of a cheque. Â Both bearer and order cheques can be crossed. Crossing a cheque preventsÂ fraud and wrong payments. Thus, crossing is necessary in order to have safety.
Types of Crossing a cheque:
â€¢ General Crossing
â€¢ Special Crossing
â€¢ Account Payee or Restrictive Crossing
â€¢ ‘Not Negotiable’ Crossing