What is the difference between crossed cheque and bearer cheque

Manish asked 5 years ago. What is the difference between crossed cheque and bearer cheque? Share this:. Sorry, your blog cannot share posts by email. Link Text. The bearer cheque is the best known and probably the most common. Unlike the nominative, the bearer cheque does not contain any information about the beneficiary, so it can be cashed by anyone who has it in their possession.

Obviously, this entails security problems in terms of cashing for the beneficiary, since if they lose it, another person can cash it. They are issued by banking entities or non-banking financial organizations such as Visa, Mastercard or American Express and ensure that the beneficiary will be able to pay or cash in any other currency if the establishment accepts it.

In addition, they do not have an expiration date. Last but not least, there are other types of cheques that we must also consider:. Go to the banking entity that appears on the cheque. Otherwise, you will not be able to cash it. To cash a bearer cheque, you will not need to identify yourself, but in the rest of the cheques you will.

However, if the bank has not endorsed the cheque, no one guarantees the payment of funds. Banks are not required to pay a cheque from another entity. Those who accept the service charge an extra commission for doing so. You have 15 days in Spain, 20 days if it has been issued in Europe, and 60 days if it has been issued in another part of the world.

XYZ can either credit the amount in his account of furthermore endorse the cheque to Mr. This means there is no restriction on who can endorse the cheque. In the case of bearer cheque, the bank can encash the cheque in favor of the person who presents the cheque.

Crossed cheque cannot be encashed. There are 2 types of crossing which can instruct the bank to act accordingly with the amount of the cheque. This is the most general type of crossing where the drawer simply puts two parallel lines at the upper left corner of the cheque.

You cannot encash a crossed cheque over the counter. Special crossed cheque is where you write a set of instruction in between the crossings. In such cases, the drawee can pay on in the account of the payee or can only credit the amount through State Bank of India SBI must act as the drawee.

However, it is not compulsory to write so. This will instruct the bank whom to pay the amount of the cheque. This type of crossed cheque increases the security on the cheque. The payee cannot endorse the cheque. Thus, the cheque amount can only be deposited in the payee account. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements.

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