written by | April 14, 2022

Learn All Necessary Information About Cross Cheques

In India, a cheque is a critical component of the financial system, making it a vital instrument for sending and receiving funds without a physical transfer of money. What good is a cheque? In layman's words, a cheque is a vital document that each individual, company, or government uses to trade various amounts of cash. To make successful cheque transfers, the issuer must have an account, whether it’s a savings or a current account, with a certain banking institution. This would make a smooth fund transfer. Despite the fact that electronic ways of payment transfer have gained in popularity in recent years, cheque transactions are still seen as a secure method of transferring money with companies in various countries.

Did you know?

Once the cheque is crossed, the payee cannot uncross it, and it isn’t transferable to a third party as well.

What is Cross Cheque?

A crossed cheque is any cheque that has two parallel lines crossing across it. You can draw the line throughout the entire cheque or only in the upper left-hand corner. What does that really represent? It simply indicates that the particular cheque may only be placed directly into a financial institution such as a bank, and you cannot convert it into cash immediately through a bank or other credit agencies. Because the collecting bank handles the cash, this provides a measure of protection to the payer.

  • cross cheque sample

Why Do We Use Cross Cheque? 

  • When you cross the cheque, it offers particular instructions to the financial institution on the handling of cash.
  • Furthermore, the cross cheque is often identified by drawing two parallel crossing lines. It can be found either vertically all over the cheque or in the upper left-hand corner.
  • Inside the lines, 2 or more statements such as firm name or not negotiable may be set. Also, just drawing the lines with no text would not change the function of the cross cheque.
  • The rules for crossing cheques may differ depending on the country, such as its format or remarks.
  • As a result, cross-cheques may only be paid through a bank account. The transaction record of the receiver can be found afterwards for additional questions and clarifications.

Also Read: What Is The Difference Between Overdraft (OD) and Cash Credit (CC)?

Different Ways to Cross a Cheque

The direction supplied by the drawer (creator) of the specific cheque to the drawee bank is the centre of a cross cheque. This order directs that one can collect the cheque payment at the bank desk, but only to an individual who provides it via a banker. What exactly is the point of crossing it? After the payment through cheque, if, in any case, you want to find out the individual to which the cheque is paid, you can find the details when you cross it. There are several crossing mechanisms available in India to protect cheque payments, including:

General Crossing

This sort of cheque crossing necessitates the use of two parallel diagonal lines. You can draw parallel lines anywhere on the cheque. You can draw them at any spot. It is generally best to place it in the upper left corner of the cheque. The importance of this crossover is that the cheque payment can only be issued by a banker.

Special Crossing

For Special Crossing cheques, there is a requirement for the name of the banking institution to be mentioned on the cheque. This form of crossing has the consequence of funding the cheque exclusively to the intended recipient. It serves as a reminder to everyone that you can never convert an ordinary crossing into a special crossing.

Account Payee Crossing

 It is another name for restricted crossing. The phrase A/c payee must only appear on this sort of cheque. In addition, you should either do generic or specific crossing on it. The importance of this form of crossing emphasises that the cheque is no longer convertible.

Not Negotiable Crossing

In this sort of cheque crossover, the cheque must include the phrase 'not negotiable. Furthermore, you should also cross the cheque in either specific or generic methods. What impact does this crossing have? The cheque stays non-negotiable, and the transferee’s position will not be superior to the transferor's title.

Uncrossing a Cheque

If you understand what a cross cheque is, you can see that the payee cannot claim the cheque. Moreover, the cheque is non-transferable, which implies that one cannot deliver it to a third party. Nevertheless, only the payee has permission to place the cheque in a bank in their own name.

As a result, the payee can unclench the cheque by writing a crossing cancelled on the front area. Nevertheless, the experts do not advise this move because it removes the payer's original security.


Whenever a bank to which the cheque was specifically crossed sends the same to some other financial institution for collecting as its representative, then double-crossing is followed. The secondary crossing should specify that it is working as a representative of the earlier bank, to whom the cheque was particularly crossed.

Parties Involved in Cheque Transactions

 Usually, you will find three types of entities involved in cheque transactions.


Cheque transactions often include three participants, and the drawer is the individual responsible for the accounts and has the power to write and sign cheques. As a result, the person writes cheques from their bank account. The drawer instructs institutions to transfer a specific sum of money to a specific individual or the holder of the cheque. In other terms, the drawer is the individual who controls the savings account and signs the cheque.


The drawee is the person or entity to whom the cheque is payable. Your institution is the drawee. So the drawers instruct the drawee to make the payment specified on the cheque to the person identified or to the cheque holder. Whenever your bank implements the instructions and pays the money to the individual whose name is on the cheque or to the cheque holder, you can refer to this as the cheque being honoured. If the bank does not pay the amount, the cheque is held as dishonoured.


This person is the one who gets the payment. Payee’s name appears on the cheque, indicating that the cheque holder can accept the cash. Therefore, if the drawer has to withdraw funds from their accounts and use a cheque, then they must put SELF in the payment area of the cheque. In this situation, the drawer becomes the payee.

Also Read: All You Need To Know About Cash Deposit Slip

Importance of Crossing a Cheque

  • You are not eligible to draw cash when you have a cross cheque at a bank desk. As a result, it safeguards both parties.
  • In the event of account payee crossing, the cross cheque should be transferred only to the payee's account.
  • Crossing a cheque protects the issuer of the cheque from fraud.
  • In contrast to open cheques, it is easy to determine who cashed the cheques in the situation of crossover cheques.
  • A crossed cheque prevents the occurrence of fraud if the cheque is missing or damaged.

Cancellation of the Crossing of Cheque

It is also known as the crossing's opening. Just the drawers can reject a crossing by appending the words crossing cancelled together with the drawer's entire sign. In this case, the payment of the cheque is directly transferred to the drawer or payee. In these kinds of instances, the likelihood of forgery is considerably higher.


A cheque is a unilateral contract for transferring money from one account to another, and you can cross it in a variety of ways. Cheque crossing gives safety and assurance to both the signed person of the cheque and the beneficiary. It also aids the drawers and bank in locating the recipient. Both the drawer and the bearer will have access to the cross when the crossing is missing on the cheque. Even if you write the terms such as accounts payee or not transferable on a cheque, it cannot forfeit its original obligation.
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Q: Are all cheques crossed?


No! A cheque that hasn't been crossed exists, but it's not favoured since it lacks security in terms of issuing the payment.

Q: What happens when the bearer does not cross the cheque?


One can consider the cheque as an open cheque when the crossing is missing. The holder can cross the cheque and encash all the amount at the bank desk.

Q: Does the chequebook have an expiration date?


If the bank is issuing a cheque book, then it does not have an expiration date. You can use the cheques available in the book whenever you want. However, there are several situations in which a chequebook is ineffective, such as:

  • The chequebook accounts have run out of cash, resulting in a cheque bouncing.
  • The book mentions a shift in the account number.
  • Changes to the bank's steering numbers.

Q: Who can cross the cheque?


  • The drawer: The person who receives a cheque might cross it using any generic or specific methods. 
  • The bearer: Whenever a cheque is public, the bearer may cross it in general or specific methods. Whenever the bearer crosses the cheque as general, the bearer can later cross it using a specific method.

Q: What is the duration of a cheque's validity?


After writing any cheque, it is valid for 3 months. After this time, it turns old, and the consignee bank may refuse to make the payment. Nevertheless, if the cheques have now become old owing to the expiration of the validity, the writer can re-validate them.

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