Significance of General Crossing

Significance of General Crossing A crossed cheque should not be paid across the counter. Even if the payee of a crossed cheque is well-know, the paying banker is directed to make payment only through another banker. If the payee does not have a bank account, he can collect it only through someone who is having a bank account. As a result, even if a crossed cheque has been stolen and collected for party not entitled to it, the person for whom it has been collected can be easily traced. Thus crossing ensures safety and prevents payment intro wrong hands. . Special Crossing According to section of the Negotiable Instruments Act, , “Where a cheque bears across its face an addition of the name of a banker with or without the words “not negotiable”, that addition shall be deemed a crossing and the cheque shall be deemed to be crossed specially and to be crossed to that banker”. Here that parallel transverse lines are not essential. But the name of banker to whom the payment should be made is to be necessarily written on the face of the cheque. Thus it must be noted that while drawing of two parallel transverse lines is a ‘must’ for a general crossing, the addition of the name of a banker constitutes the essential part of special crossing.