Types of Crossed Cheques Complete Details

A crossed cheques is a cheque on which two parallel lines (or a crossing mark) are drawn across the face of the cheque usually on the top-left corner or across the cheque to indicate that it cannot be encashed over the counter. Instead, it must be deposited into a bank account. This makes the payment traceable and reduces the risk of theft or misuse.

Common visual forms:

• Two parallel lines || on the top-left corner; or
• Two diagonal lines forming an ‘X’; or
• The words “A/C Payee” or “Account Payee” between the lines (see types below).

Why crossed cheque?

• Prevents immediate encashment by anyone who holds the cheque.
• Ensures funds are credited only through the banking system to an account.
• Adds an extra layer of security against fraud and loss.

Types of crossed Cheques

General Crossing

• Marked with two parallel lines only (no bank name).

• Means the cheque must be deposited into an account at any bank; it does not limit the bank that can collect funds.

• Example mark: || or Crossed.

Special Crossing

• Parallel lines plus the name of a specific bank written between them (e.g., || HDFC Bank ||).

• Restricts collection to the named bank only — the cheque must be deposited/collected through that bank.

Account Payee Crossing (a restrictive form)

• Marked with the words “A/C Payee” or “Account Payee” between the lines, often combined with the payee’s name.

• The cheque can only be credited to the account of the named payee — even if it is presented through another bank. Highly secure.

Not Negotiable Crossing (optional phrase)

• If “Not Negotiable” is added, the cheque still transfers value but the transferee gets no better title than the transferor (i.e., protects against transfer of a stolen cheque).

Note: Local banking rules or laws may use slightly different terminology. Check your bank’s guidance if you operate in a jurisdiction with special rules.

Crossed Cheques Types – Table Format

Feature	Details
Definition	A cheque that has two parallel lines drawn on it, restricting it from being cashed over the counter. It must be deposited into a bank account.
Purpose	Enhances security, prevents misuse, ensures payment is routed through the banking system.
Common Appearance	Two parallel lines on the top-left or across the cheque; sometimes includes words like “A/C Payee”, bank name, or “Not Negotiable.”
General Crossing	Only two parallel lines (e.g., `
Special Crossing	Two lines with a specific bank’s name between them (e.g., `
A/C Payee Crossing (Restrictive)	“A/C Payee” written between lines. Amount can only be credited to the named payee’s account. Most secure.
Not Negotiable Crossing	“Not Negotiable” written between lines. Does not stop transfer but ensures the transferee cannot get a better title than the transferor.
Encashment Rules	Cannot be encashed at the counter; must be deposited into a bank account.
Security Level	High — reduces risk if cheque gets lost or stolen.
Common Uses	Salaries, refunds, business payments, legal transactions, payments requiring proof.
Advantages	Secure, traceable, prevents unauthorized encashment, creates documented record.
Disadvantages	Cannot be immediately cashed, requires bank account, may delay fund availability.
Examples of Wording	`
Bank Processing	Presented through clearing; deposited into the payee’s account only (or specific bank in case of special crossing).
Important Notes	Avoid conflicting instructions (e.g., “Pay Bearer” + crossing). Clear and neat crossing ensures smooth processing.

How to cross a cheque (practical steps)

1. Take the cheque you are issuing.
2. Draw two parallel lines on the top-left corner or across the face (short, neat).
3. Optionally write one of the restrictive phrases between the lines:
   • A/C Payee or Account Payee for the strongest restriction, or
   • the name of a bank for a special crossing, or
   • Not Negotiable for transfer-title protection.
4. Sign the cheque as usual.

Example (simple):

[Payee: Mr. Rahul] Amount: ₹10,000
|| A/C Payee ||
Drawer’s signature

How banks handle a crossed cheque

• A crossed cheque cannot be cashed at the teller window.
• It must be deposited into a bank account. The collecting bank sends it through clearing to the drawee bank for payment.
• If specially crossed to a particular bank, the collecting bank must present it via that named bank or through established clearing channels.
• If the crossing is ambiguous, banks may return the cheque or request clarification.

Advantages

• Security: Reduces risk if cheque is lost or stolen (cannot be cashed immediately).
• Traceability: Funds flow through bank accounts, creating records.
• Proof of payment path: Good for business accounting and audit trails.
• Reduced misuse: Prevents third parties from encashing.

Disadvantages / limitations

• Requires the payee to have a bank account (or to deposit into one).
• Can delay immediate access to funds (compared to open/uncrossed cheque).
• If crossed incorrectly or unclearly, it may be returned or delayed.

Common use cases

• Salary payments, vendor payments, refunds, business transactions, legal settlements — any payment where traceability and security are desired.

Practical tips & best practices

• For safest transfer use “A/C Payee” crossing plus payee name.
• Keep crossings neat and unambiguous; avoid scribbles that might invalidate the crossing.
• If you want collection by a particular bank, write that bank’s full name in the crossing (special crossing).
• Never combine a crossing with contradictory instructions (e.g., “Pay Bearer” and crossing lines).
• If you are a payee and receive a crossed cheque, deposit it promptly to avoid it becoming stale (many banks treat cheques older than 3–6 months as stale).
• If a crossed cheque is lost or suspected stolen, contact your bank immediately to stop payment if possible.

Sample scenarios and wording

General crossed cheque (any bank deposit):

• Mark: ||

• Wording on cheque (optional): Crossed

Account payee crossing (most restrictive):

• Mark: || A/C Payee ||

• Ensures only the named payee’s account receives funds.

Special crossing (specific bank):

• Mark: || State Bank of X ||

• Requires the cheque to be processed through that bank.

Not negotiable:

• Mark || Not Negotiable ||

• Protects subsequent transferees’ title.

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