Crossing of cheques

[citation needed] Adding a crossing to a cheque increases its security in that it cannot be cashed at a bank counter but must be paid into an account in exactly the same name as the payee or endorsee indicated on the check.

The effect of such a crossing is that it removes the most important characteristic of a negotiable instrument (according to section 123).

In these cases, the respective restrictions mandate to pay the cheque through State Bank of India (acting as collecting banker) only.

A bank's failure to comply with the crossings amounts to a breach of contract with its customer.

The bank may not be able to debit the drawer's account and may be liable to the true owner for his loss.