There are two main types of the crossing of cheques, each with its specific features and uses. These are:
-
General Crossing: A general crossing is when two parallel lines are drawn on the face of the cheque without any additional words. This signifies that the cheque can only be deposited into a bank account, but does not specify the account holder or any particular bank. The payee can deposit the cheque into any bank account of their choice.
-
Special Crossing: A special crossing is when the two parallel lines are accompanied by certain words such as “Account Payee Only” or “Not Negotiable”. This signifies that the cheque can only be deposited into the account of the named payee or a third party endorsed by the payee. This ensures that the funds are only accessible to the intended recipient and cannot be misused by others.
In addition to these main types of crossing, some other variations may be used in certain situations. For example:
-
Restrictive Crossing: A restrictive crossing is a type of special crossing that specifies additional conditions for depositing the cheque. For example, the cheque may be crossed with the words “For Deposit Only” to indicate that the funds can only be used to deposit into the payee’s account and cannot be withdrawn in cash.
-
Multiple Crossing: A multiple crossing is when the cheque is crossed more than once, with each crossing indicating a different condition for depositing the cheque. For example, the cheque may be crossed with the words “Account Payee Only” and “For Deposit Only” to specify both the payee and the conditions of the deposit.
These are some common types of the crossing of cheques, but there may be other variations depending on the specific requirements of different financial institutions or jurisdictions.
