Restrictive Crossing?

Besides the above two types of statutory crossing, in recent years the practice of crossing cheques with the words 'account payee' or 'account payee only' has sprung up. Such is termed as 'restrictive crossing'.

Restrictive crossing is only a direction to the collecting banker that the proceeds are to be credited only to the account of payee named in the cheque. In case the collecting banker allows the proceeds to be credited to some other account, it may be held liable for wrongful conversion of funds. It does not in any way affect the paying banker, who has simply to see that the cheque has been presented to it for payment by any bank in case of general crossing and by the particular bank (named in crossing) in case of special crossing. It is under no duty to ascertain that the cheque is in fact collected for the account of the person named as payee.

Specimen of Restrictive Crossing.

It is to be noted that the basic ingredient of crossing, 'the two transverse parallel lines' across the face of the cheque, must be present in order to constitute any cheque as a crossed cheque. The cheque will not be taken as a crossed cheque if this has not been done.