Last month I visited my bank to withdraw some money and witnessed a man providing a bank official a Not Negotiable Crossing in cheque. I had no idea about it and thought it was simply a normal cheque and he too had come to withdraw money like me but no. It was a totally different type of cheque. Let me tell you the reasons for telling this.
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What does Not Negotiable mean?Not Negotiable Crossing cheque takes away the negotiable title of a cheque, which means that the transferee cannot bear the title of the cheque holder but the cheque still remains transferable.
It looks like an ordinary cheque only but it cannot be cashed or deposited under any circumstances.
Now this must have answered your question: what is Not Negotiable Crossing cheque but let me tell you that it has a great disadvantage as well. Suppose a person has stolen a cheque marked with Not Negotiable, he then can encash it and get the eligibility to refund the enachsed money to the owner as well.
What is the advantage of using a Not Negotiable Crossing Cheque?The phrase “Not Negotiable” restrains the negotiability of the cheque thereby increasing the security and protection to the holder to a great extent.
It also traces the person receiving the amount mentioned on the cheque.
I hope this is enough to provide you with a basic concept of Not Negotiable Crossing.
Read More:What is cross cheque?
What is bearer cheque?
What is a CTS cheque?
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What Is Not Negotiable Crossing?
Sejal
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2 Year
2022-09-13T09:31:28+00:00 2022-09-13T09:31:29+00:00Comment
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