Banking Guide

Crossed Cheque: Meaning, Types, and Why Those Two Lines Matter

A crossed cheque is a cheque with two parallel lines drawn across its top-left corner. The crossing instructs the bank that the cheque cannot be encashed for cash over the counter; the amount must be deposited into a bank account. This creates a traceable money trail and protects the cheque if it is lost or stolen. Crossing types include general crossing, special crossing, and account payee crossing.

What is a crossed cheque?

Crossing is a written instruction on the face of the cheque that restricts how it can be paid. Two parallel transverse lines at the top-left corner of the cheque are the mark of crossing. Sections 123 to 131 of the Negotiable Instruments Act, 1881 define crossing and its legal effect in India.

An open (uncrossed) cheque can be presented at the drawee bank's counter and paid in cash to whoever presents it, subject to the bank's verification. A crossed cheque removes that possibility. Payment can only travel bank-to-bank: the payee deposits the cheque into their own account, and the money moves through clearing.

Why it matters: if an open bearer cheque is lost, whoever finds it can potentially encash it. If a crossed cheque is lost, the finder cannot get cash. They would have to deposit it into a bank account, which creates an identity trail. Crossing converts a piece of paper that is nearly as risky as cash into a traceable instrument.

Types of crossing (with what each looks like)

General crossing (Section 123)

Two parallel lines across the top-left corner. Optionally the words "& Co." or "Not Negotiable" between the lines. Effect: the cheque must be deposited into a bank account. Any bank can collect it for the payee. This is the lightest form of crossing — it stops counter cash payment but still allows the payee to use any bank for collection and to endorse the cheque to someone else if needed. Use it when you want a bank trail but do not need to restrict which bank collects or who ultimately receives the funds.

Special crossing (Section 124)

The name of a specific bank is written between (or instead of) the lines, e.g. "State Bank of India". Effect: only the named bank can collect the payment. Used when the drawer wants to restrict collection to the payee's known bank — for example, when you know the payee banks only with SBI and you want to prevent any other bank from collecting the instrument. Rare in daily practice but legally powerful: it narrows the collection route to a single bank, which is useful in high-value or sensitive payments where you want to control the path the money takes.

Account payee crossing (restrictive crossing)

The words "A/c Payee" or "Account Payee Only" written between the two lines. Effect by banking practice: the amount can only be credited to the account of the exact payee named on the cheque. It cannot be endorsed over to a third party. This is the strongest and most common protective crossing in India, and most pre-printed cheque leaves today already carry it. Account payee crossing is a matter of settled banking practice and RBI direction rather than an explicit section of the NI Act, but banks treat it as binding, and a collecting bank that credits it to anyone else loses statutory protection. Use it for almost every business payment — salaries, vendor bills, refunds — where the money must reach the named payee and no one else.

Not Negotiable crossing (Section 130)

The words "Not Negotiable" added to a crossing. Effect: the cheque can still be transferred, but the transferee gets no better title than the transferor had. If the cheque was stolen anywhere along the chain, even an innocent recipient cannot claim the money. It kills the free negotiability that normally protects a holder in due course. Use it when you want to warn anyone receiving the cheque through transfer that they take it subject to any defect in the transferor's title — common in settlements where title disputes are possible.

Crossed cheque vs account payee cheque vs bearer cheque

FeatureBearerGenerally crossedA/c Payee

Cash over the counterYesNoNo

Must be deposited in a bank accountNoYesYes, and only the named payee's account

Can be endorsed to someone elseYesYes (unless Not Negotiable)No

Risk if lostHighMediumLowest

Typical useSmall cash payments, self-withdrawalsPayments where a bank trail is wantedSalaries, vendor payments, serious business payments

Collection restricted to a named bankNoOnly with special crossingNo

Title protection against theftNoneOnly with Not NegotiableYes — only the named payee can credit

Pre-printed on most cheque leavesNoNoYes (savings accounts)

For a deeper look at account payee cheques specifically, see our dedicated guide. For bearer cheques and their risks, see the bearer cheque guide.

How to cross a cheque correctly

Draw two parallel lines diagonally or vertically across the top-left corner of the cheque. A gap of roughly half a centimeter between the lines is conventional. The lines must be clearly visible — faint pencil marks can be missed by the collecting bank and may not be honoured as a crossing.

To make it account payee, write "A/c Payee Only" between the lines. Write legibly in ink; the words must be readable and unambiguous. Avoid abbreviations the bank might not recognize.

Do this at the time of writing the cheque, before handing it over. Crossing after the cheque leaves your hands is not in your control — the payee could deposit it uncrossed before you have a chance to add the crossing.

A crossing cannot be safely "uncrossed". Technically only the drawer can cancel a crossing by writing "Crossing Cancelled" and signing in full, but banks are extremely reluctant to pay cash against such cheques and most will refuse. Treat crossing as one-way.

Note that most Indian banks now pre-print "A/c Payee" crossing on cheque leaves for savings accounts. Business/current account cheque books often leave it to the drawer so that bearer cheques remain possible when needed.

Common mistakes with crossed cheques

• Crossing a self cheque. If you are writing a self cheque to withdraw cash, do not cross it — crossing blocks counter payment and the cheque becomes useless for its purpose. Use an uncrossed leaf.
• Faint or incomplete lines. Pencil marks or a single line instead of two do not legally constitute a crossing. Use ink and draw two clear parallel lines.
• Writing the wrong bank name in a special crossing. If you name a bank that does not collect for the payee, the cheque cannot be collected at all. Use special crossing only when you are certain of the payee\'s bank.
• Assuming account payee crossing is optional. For business payments, treat account payee crossing as mandatory unless there is a specific reason to leave the cheque open. An uncrossed business cheque is a liability if lost.
• Trying to uncross a cheque after issuing it. Even if the drawer writes "Crossing Cancelled" and signs, most banks will refuse counter payment. Issue a fresh cheque instead.

Crossed cheques in business payments

For a business, the rule of thumb is simple: cross every cheque, account payee, unless there is a specific reason not to. It protects against loss in transit, ensures the money reaches the intended vendor, and creates the clean audit trail your accountant and the tax department want. An uncrossed cheque that goes missing in the post or in a courier bag is a serious exposure — the finder could, in principle, deposit it into an account if it is not account payee crossed.

Account payee crossing also matters for internal control. When every cheque is account payee, the payee name on the cheque must match the account name at the collecting bank. This makes it much harder for a fraudulent employee to redirect a vendor payment to their own account, because the collecting bank will reject a name mismatch.

The practical annoyance is doing this by hand across dozens of cheques. Cheque printing software handles it automatically: ChequeGuru prints "A/c Payee Only" crossing along with the payee name, amount and date on every cheque, positioned correctly for your bank's format, so no cheque ever leaves your office unprotected by accident.

Frequently asked questions

Can a crossed cheque be encashed at the bank counter?

No. That is the entire effect of crossing. The amount must be collected through a bank account.

Can I deposit a crossed cheque into someone else's account?

A generally crossed cheque payable to you can be endorsed to another person (they deposit it in their account), unless it is account payee crossed. An account payee cheque can only go into the named payee's own account.

What does "Not Negotiable" mean on a cheque?

The cheque can still be transferred, but the recipient's claim to the money is only as good as the transferor's. If there was theft or fraud earlier in the chain, even an innocent holder cannot recover the money. It is a risk warning to anyone accepting the cheque from someone other than the drawer.

Who can cross a cheque?

The drawer at the time of writing, and the holder can also add or strengthen a crossing (e.g. convert general to special, or add account payee). A crossing can be strengthened by anyone but weakened by no one except, theoretically, the drawer.

What happens if a bank pays cash against a crossed cheque?

The paying bank loses statutory protection and is liable to the true owner of the cheque for any loss. This is why banks flatly refuse counter payment of crossed cheques.

Is a crossed cheque valid for 3 months like other cheques?

Yes. Crossing does not change validity. All cheques in India are valid for 3 months from the date written on them.

Crossed cheque and cancelled cheque, what is the difference?

A crossed cheque is a live payment instrument restricted to account deposit. A cancelled cheque is voided entirely and used only for sharing bank details. See the cancelled cheque guide.

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