Hey pal,
Cheques are the most popular negotiable instrument used by banks. A general assumption exists that cheques are payable over the counter when presented by a payee. There is another type of cheque as well. I will share with you what is general crossing cheque.
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General crossing meaning :
These are cheques that are not payable over the counter. These cheques can only be collected through a banker. The amount mentioned on the cheque (payable amount) is then transferred to the payee’s bank account. Different types of crossing cheques are General Crossing, Special Crossing and Restrictive Crossing.
Payment of general crossing cheque can only be made by the bank account. Usually, such cheques will have additional two parallel transverse lines and/or the addition of words ‘and Co.’ or ‘not negotiable’ between them. This protects the issuer of the cheque. Many companies use this cheque when they want the financial organisation to manage their funds in a precise manner.
Here is how it works :
The payee gives cash to the banker. The holder of the cheque ( receiver/ drawee) only gets the amount in his checking account once the banker has completed all the verification formalities. At no point can the bearer encash the cheque. If you wish to know more information on the topic, you can always check the Negotiable Instruments Act, Sections 123 and 126.
This is all from my end on what is general crossing cheque.
Read more :
How to cross a cheque
What is cross cheque
What is ac payee cheque
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What is general crossing ?
Ridhima
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2 Year
2022-09-09T11:07:08+00:00 2022-09-21T14:30:31+00:00Comment
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