Please note that special crossing can not be converted into general crossing. Assume you take a draft for 100 dollars in favour of Mr. The account of the drawer has the money deposited on the account. What is Account Payee Cheque? Ajay presents a cheque of Rs. How are we to know A has assigned the instrument to B? Hence there is certainty of the payment in the case of a demand draft. However, once the bank receives official notification, such as adeath certificate, the account is closed or … transferred to thebeneficiary. Such crossing affords a greater measure of protection against loss.
An administrative fee may be charged by the bank. His name will be mentioned on cheque, so he is an authorized person to receive cash. A is mentioned as an evidence in case file. I also wanted to know I issued a cheque to a person on her name. An is also paid only into the account of the person whose name is written on the check and thus, no counter payment is done. This person holds an account in the bank and writes the cheque on the same account. I presented my cheque in my Maharashtra Bank at Chandigarh.
Most of the people are confused with the terms used in cheques like Cross cheque, Account payee cheque, Bearer cheque, Self withdrawal cheque etc. Hence there is certainty of the payment in the case of a demand draft. A cheque can be made payable either to a bearer or order. An order cheque can be negotiated to another person by the endorsement of the transferer. Please please reply sir I am full on tension. In case the Cheque gets dishonored, Mukesh can sue Suresh and Suresh can sue Ayesha and Ayesha can sue Rohan Account payee Cheque. Here, the bank makes payment only to the bank whose name is written between the lines.
When you write a cheque, you're the payer and the receiver of the cheque is the payee. This process is called cheque clearing. Hi thanks for valuable information. Hello Sir, I have received a cash cheque of Rs. He is out of town and so cannot sign at the back of the check. The banker refuses me to give the payment from my own account. So, I can write Mr.
A bearer cheque can be collected by the bank for the credit of anyone's account. It can be transferred only by endorsement and delivery. Another added benefit is in case the draft is lost, any body with the same name can claim the cash. Bank is acting as per rule. But a demand draft is always payable to order of a certain person.
A cheque is issued by an individual, whereas a demand draft is issued by a bank. Can you throw light on this? The cheque cashing agency will have lost the protection of the crossing and the arrangement with its own bank is that it is liable for any loss in the event that these cheques are unpaid i. For any queries or suggestions, please leave a comment below. Since the amount will only be paid by depositing it into the account of the payee, there is least chance of misuse. Is there any way out to get this cheque encashed at Maharashtra Bank, Chandigarh. Therefore, this saves a lot of time and process when the middleman has to make payments.
In general, issuing of cash cheques is not encouraged as they are exposed to risk of fraud. Please contact your bank for details. This means that the payee has to credit the amount to his account only and that he cannot forward it to another person. This means that, the cheque is a Account Payee cheque which means it can only be deposited into another account and cannot be exchanged for cash over the counter. Now when i look into my icici bank statement , i am see that for this transaction , the amount was deposited to some different name — M R laboratories.
These kinds of checks are considered more safe than a general crossed check. No - If you are not a joint holder of the account along with your parents, then you cannot deposit it into that account. . Mere writing a name of a bank across the face of the cheque constitutes special crossing. This is called a cash cheque. I am confused as to how can this happen.