General Crossing & Special Crossing of Cheque: The Complete 2026 JAIIB Guide

The crossing of cheque is one of the most loved topics of every JAIIB examiner. And for good reason. It is simple to understand.

Easy to test. And shows up year after year in the Principles. Practices of Banking (PPB) paper.

If you can clearly separate general crossing from special crossing. You have already locked in some of the easiest marks on the exam.

In this 2026 guide. We break down the entire concept the way a senior banker would explain it to a new probationary officer. Short sentences. Real examples. Zero confusion.

What Is Crossing of a Cheque?

The crossing of a cheque is a direction given to the paying banker to pay the amount of the cheque only through a banker. And not directly to the person presenting it at the counter. In plain words, a crossed cheque cannot be encashed across the counter.

You create a crossing by drawing two parallel transverse lines on the face of the cheque. Usually on the top left corner. These lines may or may not carry words inside them. The moment those lines appear, the instrument becomes a crossed cheque.

This is why crossing matters so much in banking. It forces the money to move through the formal banking channel. That creates a record. Links the payment to an account. And makes it far harder for a thief or a finder to misuse a lost or stolen cheque.

Crossed Cheque vs Open Cheque

An open cheque (or bearer cheque) can be paid in cash over the counter to whoever presents it. A crossed cheque cannot. It must be routed into a bank account.

Because of this single difference. A crossed cheque is a much safer way to transfer money than an open cheque. If it falls into the wrong hands. The payment can still be traced through the collecting bank.

Why Crossing of Cheque Matters for the JAIIB Exam

The topic of crossing of cheque sits inside the Negotiable Instruments Act. 1881, a backbone chapter of the JAIIB PPB syllabus. Examiners love it because it lets them test definitions. Section numbers, and tiny exceptions in a single multiple-choice question.

Expect questions that mix up the section numbers. Swap the definitions of general and special crossing. Or ask which type of crossing offers more protection. Master the basics here and you will rarely lose these marks.

Before we go deeper. Here is a quick orientation table you can memorise.

Always confirm the exact section wording on the latest official IIBF notification. Since exam framing can be precise.

General Crossing of Cheque (Section 123)

As per Section 123 of the Negotiable Instruments Act. 1881. Where a cheque bears across its face two parallel transverse lines. With or without the words "and company" or any abbreviation. Or with or without the words "not negotiable," the cheque is said to be crossed generally.

The key idea is this: in a general crossing. No specific bank is named. The banker shall not pay such a cheque otherwise than to a banker. So the money can be collected through any bank. As long as it goes through a bank.

Features of a Generally Crossed Cheque

A generally crossed cheque may show any one of the following on its face:

• Two transverse parallel lines (the bare minimum).
• Two parallel lines with the words "And Company" or "And Co."
• Two parallel lines with any abbreviation of "& Company".
• Two parallel lines with the words "Not Negotiable".
• Two parallel lines with the words "Account Payee Only".

Notice the common thread. In every case there are two lines. There is no bank name. That absence of a bank name is what makes the crossing general rather than special.

Can a Crossed Cheque Be Made a Bearer Cheque Again?

Yes, but only by the drawer. A crossed cheque can be opened (made payable over the counter again) by cancelling the crossing. Writing the words "crossing cancelled" or "pay cash,". Affixing the full signature of the drawer next to it. This act is called opening of crossing.

Special Crossing of Cheque (Section 124)

As per Section 124. Where a cheque bears across its face the name of a banker. With or without the words "not negotiable," the cheque is said to be crossed specially. The cheque is then crossed to that particular banker.

Here the name of a specific bank is written on the cheque. Payment is made only when that named bank presents the cheque for collection. No other bank can collect it.

Features of a Specially Crossed Cheque

• Two parallel transverse lines are not necessary for a special crossing. The bank's name alone is enough.
• The name of the banker must be specified across the face of the cheque.
• It usually appears on the left-hand side of the cheque.
• Where a cheque is crossed specially. The banker to whom it is crossed may again cross it specially to another banker (its agent) for the purpose of collection. This is called double crossing.

General Crossing vs Special Crossing: Side-by-Side

This comparison table is the heart of the topic. If you can reproduce it from memory. You can answer almost any MCQ on the crossing of cheque.

Because a special crossing names exactly one bank. It is considered safer than a general crossing. Fewer hands can touch the money.

Other Important Types of Crossing

Two more crossings appear regularly in JAIIB questions. Both build on top of general or special crossing.

Not Negotiable Crossing (Section 130)

When the words "Not Negotiable" are added to a crossing. The cheque can still be transferred. However.

The transferee cannot get a better title than the person who transferred it. If the title is defective anywhere in the chain. Every later holder takes the same defect.

In short. A not negotiable crossing removes the special protection of negotiability. Still allowing transfer. It is a powerful anti-fraud tool.

Account Payee (A/C Payee) Crossing

The Account Payee crossing is not defined in the Negotiable Instruments Act. It grew out of banking custom and practice. It is a direction to the collecting banker to credit the proceeds only to the account of the named payee.

This is the most secure crossing in everyday banking. An account payee cheque effectively cannot be transferred to anyone else for collection. Which is why most cheques today are pre-printed as "A/C Payee Only."

Protection to the Paying and Collecting Banker

Crossing also protects banks, not just customers. Two sections matter here for JAIIB.

• Section 128 protects the paying banker who pays a crossed cheque in due course. In good faith. The banker is treated as having made a proper payment.
• Section 131 protects the collecting banker who collects a crossed cheque in good faith. Without negligence for a customer.

Remember the pairing: 128 = paying banker, 131 = collecting banker. Always verify these section references on the latest official IIBF notification before the exam.

How to Study Crossing of Cheque (A Practical Plan)

You do not need hours to master this topic. You need a smart, repeatable routine. Here is a simple study angle that works for busy bankers.

1. Lock the section numbers first. 123, 124, 128, 130, 131. Write them on a sticky note.
2. Draw it out. Sketch a blank cheque and physically draw each crossing type. Visual memory beats rote learning.
3. Master one comparison table. The general-vs-special table above is your single most important asset.
4. Test yourself daily. Attempt a few targeted mock tests so the section traps stop fooling you.
5. Revise in 60 seconds. Re-read the key takeaways box every morning until the exam.

Pair this routine with our free guides for the wider Negotiable Instruments Act, and this chapter becomes a guaranteed scorer.

Common Mistakes to Avoid

Most marks on this topic are lost to small, avoidable slips. Watch out for these.

• Swapping the section numbers. General is 123, special is 124. Do not reverse them under pressure.
• Assuming special crossing needs two lines. It does not. Only the bank name is essential.
• Confusing "Not Negotiable" with "non-transferable." A not negotiable cheque can still be transferred. It just limits the title passed on.
• Thinking anyone can open a crossing. Only the drawer can cancel a crossing, with a full signature.
• Treating Account Payee as a statutory crossing. It is customary, not defined in the Act.

Frequently Asked Questions (FAQ)

What is the main purpose of crossing a cheque?

The main purpose of crossing of cheque is safety. It ensures the cheque is paid only through a bank account. Not as cash over the counter. Which prevents fraud. Theft, and wrong payment by creating a clear paper trail.

What is the difference between general and special crossing?

A general crossing (Section 123) uses two parallel lines without naming any bank. So any banker can collect it. A special crossing (Section 124) names a specific banker. So only that bank can collect it, making it safer.

Are two parallel lines compulsory for a special crossing?

No. For a special crossing. Only the name of the banker on the face of the cheque is essential. The two transverse lines are optional. This is a very common JAIIB exam trap.

Can a crossed cheque be converted into a bearer cheque?

Yes, but only the drawer can do it. The drawer cancels the crossing. Writes "crossing cancelled" or "pay cash," and signs in full. This is called opening of the crossing.

Is an Account Payee crossing defined in the Negotiable Instruments Act?

No. The Account Payee crossing is based on banking custom and practice. Not on a specific section of the Act. It directs the collecting banker to credit only the named payee's account.

Final Word: Turn This Easy Topic Into Easy Marks

The crossing of cheque is the kind of chapter that rewards clarity over cramming. Get the two definitions right. Memorise the section numbers, and burn the comparison table into your memory. Do that, and you will never second-guess a crossing question again.

Keep your momentum going. Revise daily, attempt regular mock tests, and trust the process. Every small win on a topic like this adds up to a confident first-attempt pass. You have got this.

Related Guides

For more on crossing of cheque. See the official IIBF circulars. Our chapter-wise free notes on iibf.store.