In a previous post about differences between a bearer cheque and an order cheque, we mentioned that you can make an order cheque more secure by crossing it. Now let’s see how to cross the cheque.
You may have already seen this many a time but it’s just that you didn’t know ‘those two slanting lines drawn at the top left of the cheque’ are meant for crossing a cheque. Yes, to cross a cheque just draw two forward slanting lines at the top left of the cheque leaf.
Then, any amount mentioned in the leaf will be credited to the account of the holder on whose name the cheque was written. The account number to which the amount should be credited should be mentioned in a slip that is available in respective banks.
There is one more thing that a person in possession (payee) of this cheque can do. He can endorse it. Endorsement is nothing but transferring the cheque to another person. To transfer the cheque to another person, the payee has to simply write (at the back side where generally space will be provided for endorsements) ‘Pay to so and so’ and sign it. The cheque will remain a crossed order cheque but will be a/c payable to the newly endorsed account holder.