What is cross cheque?

A cross cheque is a cheque that has two parallel lines drawn across its face. It means the money cannot be paid out in cash over the counter. Instead it must be deposited into a bank account.  

How does it work?

When you write the cheque you draw two lines either in the top-left corner or across the cheque. These lines instruct the bank: don’t give cash, deposit only.  

When should you use a cross cheque?

This type of cheque is helpful:

• For paying a contractor or vendor you don’t know well
  
   
• For larger payments where you want a paper trail
  
   
• When you want extra security and less chance of misuse
  
   
• For business payments to ensure funds land in the correct account
  
   

Quick checklist – how to cross a cheque

• Draw two parallel lines across the cheque face
  
   
• Add words like “Account Payee” if you want even more restriction
  
   
• Fill payee name, amount in words & figures as usual
  
   
• Sign the cheque
  
   
• Give it to the payee but inform they must deposit it in their bank account
  
   

Real-life example

Here’s an example: Geeta owes ₹50,000 to a consultant. She writes a crossed cheque to “ABC Consultancy”. She draws two lines, writes “Account Payee” between them, fills the details, signs it. The consultant cannot go to the counter and get cash. They must deposit the cheque in their bank account. This adds a layer of safety.

Key benefits & one caution

Using a cross cheque gives you: better security, traceability, less chance of fraud. But: clearing may take longer since the deposit must go through a bank account.