Statutory protection to Collecting Banker

01. Crossed cheque only :

The statutory protection is available to the banker only in case of cheque crossed generally or specially to himself. He can not avail this protection in case of uncrossed cheque.

02. Collection as an Agent : The statutory protection is available to the banker if he collects the cheque as an agent of the customer and not as its holder for value.

03. Good faith and without negligence : 

The most essential prerequisite for availing of the statutory protection is that the banker must receive payment in good faith and without negligence. A thing is deemed to be done in good faith when it is in fact done honestly irrespective of whether negligently or not . He should not be negligent in receiving the payment. The onus of proving that he was not negligent in collecting the cheque lies, however, on the banker himself.