How to cross a cheque ?

Crossing cheque is a way of adding security to a cheque so that it cannot be encashed over the counter, but must instead be deposited into a bank account. In India, the practice is governed by the Negotiable Instruments Act, 1881. I have shared an easy way to cross a cheque below.

How to Cross a Cheque Correctly?

To cross a cheque, the drawer (person who writes the cheque) draws two parallel lines either across the cheque or in the top left corner.

1. These lines signal that the cheque is a “crossed cheque.” 

2. Optionally, between or above/below these lines, certain words can be written: for example, “A/C Payee” (or “Account Payee Only”) or “Not Negotiable”.

3. Writing “A/C Payee” makes it so that the cheque can only be deposited into the bank account of the named payee, thereby restricting its negotiation further.

There are several types of crossings:

1. General crossing: just the two parallel lines without specifying a bank.

2. Special crossing: where the name of a specific bank is mentioned between the lines so that the cheque must be routed through that bank.

3. Restrictive (Account Payee) crossing: using “A/C Payee” so the amount goes only to the payee’s account.

4. Not Negotiable crossing: adds “Not Negotiable” so the cheque’s title cannot improve in transit; helps prevent misuse.

When you cross a cheque, be sure all other parts of the cheque are correctly filled. I hope you found this information useful.

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Hey pal,

I had never heard about the crossing of Cheques before. A banker told me that these cheques are different from banker’s cheques. He said the payable amount mentioned on these cheques is directly deposited into the account of the cheque holder. If you wish to write a cheque like this, you need to know how to cross a cheque. 

According to Section 123 of the Negotiable Instruments Act, 1881 about the Crossing of Cheques, the instruction stated above defines that the amount specified in the cheque will be deposited and will not be immediately delivered as cash to the holder( receiver) over the bank counter. 

According to the rules and regulations are given in section 123 of the Negotiable Instruments Act, 1881. You need to draw two parallel transverse lines and write the words “A/C Payee Only”, 'and company' or “Non-Negotiable”. You need to cancel the section “or bearer” on the cheque. These transverse lines can be drawn vertically across the cheque or on the top left-hand corner. 

Without the words “A/C Payee Only” the cheque can be deposited into anybody else’s bank account. The format or statement of cross-cheques usually differs from one country to another. 

If you have any more questions on how to cross a cheque. You can always google pictures of the cheque and get a reference.

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