A cheque having two parallel crossed lines only at the top of the left side of it, it is a Crossed Cheque. Before 2010, there was only a physical clearing procedure for cheques. The non CTS 2010 cheques cleared through the Clearing House. When the Payee’s bank sent the physical cheques to Clearing House and Clearing House forwarded it to the Drawer’s Bank. Trodat 222 S-printy A/C Payee Only Stamp is a premium quality product from Trodat. Moglix is a well-known ecommerce platform for qualitative range of Rubber Stamps.

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These are not Exchange traded products, and the Member is just acting as distributor. All disputes with respect to the distribution activity, would not have access to Exchange investor redressal forum or Arbitration mechanism. Have you run out of time to visit your bank branch to make an urgent… Endorse the cheque by signing on the back of the cheque.

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However, you can convert bearer cheque into Account Payee Cheque by simply drawing two parallel lines. Payee’s bank will process the cheque and send a request to the drawer’s bank for payment. The scanned image of the cheque is also sent to the drawer’s bank. When you want to issue an Account Payee Cheque, first write the cheque. Then draw two parallel crossing lines at the top of the left corner of the cheque. We can say this procedure as crossing the cheque.

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To encash an account payee cheque, you need to visit the bank where the cheque has been issued, and where the account of the issuer is maintained. You will have to provide the cheque, your ID proof and fill the required details in the encashment slip. The bank will then verify your details and after the clearance, the cash will be handed to you.

In the line following the numerical amount, a/c payee out the amount of the cheque in words. You will receive a link and will create a new password via email. For the latest updates, news blogs, and articles related to micro, small and medium businesses , business tips, income tax, GST, salary, and accounting. Below are the definitions for other different kinds of cheques. Make sure that you do not overwrite anywhere on the cheque.

The NI act does not talk about the https://1investing.in/ crossing. There is no definition of A/C payee crossing in the NI act and it is a child of banking practice. Making a cheque A/C Payee is a result of custom, use and practice and is now accepted legally. In case of a crossed cheque, the payee is free to make further endorsements. A person who signs the cheque and transfers the instrument is an endorser and in whose favor it is transferred is endorsee. The endorsee acquires a right to negotiate the instrument to anyone he / she likes.

Additionally, it is advisable to use a pen with blue or black ink, as it is easier to read and less likely to be altered. By following these simple steps, you can be sure that your account payee cheque will be processed safely and efficiently. There are several situations in which an account payee cheque may be used. For example, a business may use an account payee cheque to pay an invoice or a bill. An individual may use an account payee cheque to pay rent or a mortgage.


So, it is highly unsecured because any person can encash it through the counter, who holds it. However, Bearer Cheque has no formalities of the clearing process and it doesn’t take time for encashment. Note, you should also write the bank account number and mobile number at the back of cheque leaf. It ensured that your money gets credited in the right account even if the deposit slip detaches. Two crossed parallel lines at the top left corner of a simple cheque, is Crossing of Cheque. You can not encash this cheque through the counter.

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Therefore, he issues cheques of his bank account. He is directing banks to pay a certain amount of money to the certain person or to the bearer of the cheque. Therefore, in simple words, you may say that a person who holds the bank account and who sign on cheque is called the drawer. I would recommend you write the bank account number and mobile number of the drawer at the back of the cheque leaf. This way, the amount will get credited to the correct bank account, even if the deposit slip detaches. The payment will only be processed by the drawer’s bank account when the signature on the leaf is verified.

Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. The transmission of a cheque between one individual to the following individual and this process you can refer to as an endorsement. As previously indicated, you could only sign the crossed cheque. Whenever the recipient of a cross cheque has to make a payment, he\she can shift the cheque to his\her creditor. He\she must enter the endorsing guidelines on the reverse of the cross cheque to accomplish this.

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A holder cheque is perhaps the most prone to fraud, but an APC is a very safe document. It is essential to understand the various methods of drawing the line on cheques to fulfil the proper task. There is no requirement of endorsement of a Bearer cheque.


After receiving the request, the drawer bank will start the process and examine the sign, and after confirmation, the bank will complete the payment. The receiver will get the amount only if money is in the drawer’s account. For a more profound grasp, let us discuss below thorough details regarding account payee cheques, their purposes and how they vary from all other kinds of cheques. Drawer’s bank will check the signature and process the payment. The money is paid if the drawer has a fund in his account.

What Is the Significance of an Account Payee Cheque?

There are mainly three parties involved in cheque transactions and are as below. Below accounts are used for other internal purposes and should not be used to transfer money to Upstox. Hand the cheque, deposit slip, and identification to the teller. After writing the cheque, make sure to keep it in a safe place until it is deposited or delivered to the intended recipient. In the next line, write the amount of the cheque in numerical form. This should match the amount written in words on the next line.

These are cheques that instruct the bank to deposit the payable amount in the current account of the receiver. The words ‘account payee’ or ‘ AC’ are written on the physical cheque as payment instructions. Regarding the signature, an account payee cheque differs from a crossover cheque and the order cheque, but it is opposed to holder verification.

  • Also in case of dishonor of cheque , Mr.Rohan can sue Mr.Satish and in return Mr.Satish to me and finally I can sue to the drawer of cheque.
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  • So if drawer himself need to withdraw cash from his account using cheque then he need to write as SELF in the payable field of the cheque.
  • Khatabook will not be liable for any false, inaccurate or incomplete information present on the website.
  • All disputes with respect to the distribution activity, would not have access to Exchange investor redressal forum or Arbitration mechanism.

Either he can deposit it or can endorse it to any other person by writing the appropriate instructions at the back of the cheque. But after 2010 for the CTS cheques clearance happens electronically i.e. online. For this, payee’s bank sends the data and image only of the cheque to the Clearing House. In addition to, write ‘A/C Payee Only’ between these two lines. Without these words, the cheque will not be considered as account payee. Most of us have a bank account with the cheque book facility.

You have to deposit it in your bank account with the cheque deposit slip. It’s important to note that account payee cheques are not always accepted by every bank or financial institution. Some banks may only accept cheques that have been “cleared” by the issuing bank, which can add an extra step to the deposit process. Additionally, some banks may charge a fee for depositing an account payee cheque, so it’s important to check with your bank to understand their policies and fees. 1) Drawer-He is a person who holds the account and has written and signing authority on cheque.

The Negotiable Instruments Act, 1881 defines how we can convert the normal cheque into a secured cheque. There are so many different ways to make it safe from fraud. The above provisions make the cheque more secure from misuse.

Only that person would get the payment whose name is written on the cheque. That’s why we write the words A/C Payee Only on the cheque so that any other person can’t not encash it. However, you can not encash both the cheques through the counter. For this, firstly, you have to fill all details in the cheque deposit slip. Attach it with the cheque, then give it to the customer representative or drop in the cheque drop box. After a few days, you will receive the amount of cheque directly in your account.

Trodat products are widely acknowledged in the market for their high quality. We are dedicatedly involved in providing an excellent quality array of Trodat Rubber Stamps. The place to find the best Products for every taste and occasion. We thoroughly check the quality of our goods, working only with reliable suppliers so that you only receive the best quality product. Before proceeding further, first let us understand the parties involved in cheque transactions.

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The payee would not be able to withdraw cash from the counter. Partnered with India’s most popular and secure payment solutions. Very helpful.easy to understand quickly with simple examples.thanks. In below image, I mentioned few best practices while writing cheque. B) Trading in leveraged products /derivatives like Options without proper understanding, which could lead to losses.

Also in case of dishonor of cheque , Mr.Rohan can sue Mr.Satish and in return Mr.Satish to me and finally I can sue to the drawer of cheque. Next, write the name of the person or entity that the cheque is made out to in the “Pay” line. This should be the name of the person or entity that the funds will be transferred to.

This is all from my end on account payee cheque meaning. Non-negotiable and APC are among the most trustworthy crossing techniques because they give an additional degree of security. Once you submit the cheque, the bank will complete the process and inform the drawer’s bank to make the payment. They even scan the cheque and send it to the drawer’s bank.

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