Cheque crossing is a crucial security measure in banking that ensures a cheque cannot be cashed directly over the counter. Instead, the funds must be deposited directly into a bank account, making the transaction traceable and reducing the risk of fraud. Here are the primary types of cheque crossing:
1. General Crossing: This is the simplest form, created by drawing two parallel transverse lines across the face of the cheque. It may include words like "and Company" or "Not Negotiable". The paying bank will only transfer the money to another bank, not cash it instantly.
2. Special Crossing: In a special crossing, the name of a specific bank is written between the two parallel lines. This commands the paying bank to transfer the funds exclusively to that named financial institution, adding an extra layer of security.
3. Restrictive Crossing: Also known as an "Account Payee" crossing, this type includes the words "Account Payee Only" between the lines. It strictly directs the bank to credit the funds solely into the bank account of the individual or business named on the cheque.
4. Not Negotiable Crossing: When the words "Not Negotiable" are added, the cheque loses its transferable nature. If the cheque is passed to a third party, the new holder cannot get a better legal title to the money than the person they received it from, protecting against theft.
5. Double Crossing: This occurs when a cheque bears two special crossings. It happens when the first bank instructs a second bank to act as its agent for collecting the payment, which is common in complex inter-bank clearances.
How to properly cross a cheque for Bajaj Finance
Filling out a crossed cheque correctly is essential to avoid delays or rejections. Follow these steps to ensure accuracy:
- Draw two parallel lines: Use a pen to draw two parallel lines on the top left corner of the cheque.
- Write “Account Payee Only”: Between the two lines, write “Account Payee Only” to restrict the cheque’s usage.
- Fill in the payee’s name: Write “Bajaj Finance Limited” or the specified payee name as instructed by Bajaj Finserv.
- Enter the amount and date: Clearly mention the EMI amount and the current date in the appropriate fields.
- Sign the cheque: Ensure your signature matches the one registered with your bank.
- Double-check for errors: Verify all details, including the date, amount, and payee name.
