Multiple choice

Bank B gets a cheque from its customer X (in the name of the payee). The words “pay to Mr. X account no. 3252 0001 0081 3409 Bank A” is starred. It does not bear two parallel lines on its face

  1. the cheque can be collected by Bank B for its customer

  2. the cheque is an uncrossed cheque and its payment can be obtained by Mr. X across the counter from the drawee bank

  3. it is a specially crossed cheque and its payment can be obtained by Bank A only

  4. it is a cheque crossed in favour of two banks. Hence, none of the banks can obtain its payment
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

In a special crossing, the name of a banker with or without the words 'not-negotiable' is written on the cheque. Such a cheque is crossed specially to that banker. The effect of special crossing is that the paying banker will pay the amount of the cheque only through the bank named in the cheque.

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