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Similarly the words “Not Negotiable” appear in crossing implies that the transferee
shall not obtain amount directly from counter. Generally crossed cheques are received
and transferred between known parties.

Specimen of special crossing

Endorsement of Cheque
Endorsement is an act of signing a cheque for the purpose of transferring it to
somebody else. The endorsement can be made by the payee or any subsequent holder.
Endorsements are generally made at the back of the cheque. The person making the
endorsement is known as endorser and the person to whom it is transferred is known
as the endorsee.

Encashment of Cheque

For encasement of the cheque some of the points should be taken into consideration
which are also known as rules of encasement. These rules are as follows :
1. Date on the cheque must be verified by bank whether the cheque is expired or
of future date.
2. Name of the payee should be checked .
3. The bank should confirm that the amount written in the figure matches with the
amount written in words.
4. The bank should verify the signature of drawer.
5. Bank should check whether there is any crossing, rubbing and overwriting on
cheque. If so, signature of drawer should be given at such instances.
6. Bank should check the account number if not printed or written on cheque.
7. The bank should confirm that the balance available in account is sufficient to
pay the cheque.
8. If the cheque is endorsed, the bank should make sure of it.

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