Ideally, you should also write “account payee" or “A/C payee" between the two parallel lines. If you want the bearer or payee to encash the cheque over the counter in any branch of your bank, do not draw the lines or write the words “account payee" or “A/C payee" on the cheque.
You simply had to write the name of the person on the back of the cheque and that was it – job done. So, this makes it a risk on the bank's behalf to accept a crossed cheque into the bank account of someone other than the name printed on the front and as a general rule of thumb, they just do not accept them.
Meaning of account payee (only) in EnglishThe words show that the cheque must be paid only into the account of the person to whom it is written.
When a check is payable to you, you're the only person who can do anything with it. If you don't want to cash a check yourself or depositing the check is not an option, you might be able to sign the check over to somebody else. That person would then deposit into their account or get cash.
A cheque which has no crossing at all is called an open cheque. The legislation means that a cheque which bears the 'A/C Payee' or 'A/C Payee Only' crossing can only be paid into an account in the name of the receiver of the cheque exactly as it appears on the cheque.
Based on these essentials, we explore the different types of cheques in India.
- Bearer Cheque.
- Order Cheque.
- Crossed Cheque.
- Open cheque.
- Post-Dated Cheque.
- Stale Cheque.
- Traveller's Cheque.
- Self Cheque.
A crossed check is any check that is crossed with two parallel lines, either across the whole check or through the top left-hand corner of the check. This double-line notation signifies that the check may only be deposited directly into a bank account.
Adding a crossing to a cheque increases its security in that it cannot be cashed at a bank counter but must be paid into an account in exactly the same name as that which appears on the 'payee' line of the cheque (i.e. the person who has received the cheque, who is legally the “payee” and “holder” of the cheque).
A self-cheque is drawn when the drawer wishes to withdraw money from the bank in cash for his use. This cheque can only be encashed in the account holder's or the drawer's bank. This cheque must be used carefully because if it is lost, another person may easily get it encashed by visiting the drawer's bank.
Here's an overview of the perfect check.
- Current date: Write this near the top right-hand corner.
- Payee: On the line that says "Pay to the order of," write the name of the person or organization you're paying.
- Amount in numeric form: Write the amount of your payment in the small box on the right-hand side.
Where is account payee mentioned on a cheque? The account payee is mentioned on the top left side of the cheque between two parallel lines. You should write “account payee” or “A/C payee” between the lines.
If cheque with general crossing (Section 126 - it has to be paid only to a banker) and “or bearer” canceled then cheque will be paid only in account of payee or in the account as per his order (on the back of cheque, payee can write name of anyone and sign - it is called endorsement.)
You can deposit a check made out to someone else in your own bank account if the payee endorses the check over to you. They will need to write “Pay to <your name>” on the back of the check and sign it. You can deposit a check made out to someone else in your own bank account if the payee endorses the check over to you.
4 Answers. It's theoretically possible but pretty unlikely that you'll be successful if the check is very big. This would be done by having the payee endorse the check (sign the back) and below that write "PAY TO THE ORDER OF JOHN SMITH", and then John Smith can endorse and then cash or deposit the check.
You can deposit a check made out to someone else in your own bank account if the payee endorses the check over to you. They will need to write “Pay to <your name>” on the back of the check and sign it. You can deposit a check made out to someone else in your own bank account if the payee endorses the check over to you.
No. A check can only be deposited into an account that is titled the same as the name on the check. There are exceptions where the bank may accept a third party check, but it is just that, an exception. In that case the bank wouldn't be able to prove your boyfriend authorized it and then the bank takes a loss.
