Benefits of crossed cheque.

BENEFITS OF CROSSED CHEQUE

a.            BENEFITS OF CROSSING

BENEFITS OF CROSSED CHEQUE

1. A drawer of a cheque, can, if he so desires cross it generally of specially.
2. If drawer issues an open cheque. any holder of it can cross it generally, convert a general crossing into special one or add the words "Not Negotiable"
3. Where a cheque is crossed specially, the banker to whom it is crossed may again cross it especially to another banker for collection.
4. Where an uncrossed cheque or a cheque crossed generally is sent to a banker for collection he may cross it especially to himself.

BENEFITS OF CROSSING

The crossing of cheques does not in any way restrict negotiation but afford many advantages. The risk consequent upon loss of cheque or that of its forger)' is minimized. The law requires of the paying banker to pay the proceeds of a crossed cheques only to a banker. The collecting banker on the other hand is legal expected to collect only for his customers and not for unknown person. Thus it is not possible for fraudulent person to obtain a payment without disclosing his identity.