For a complete understanding read the Negotiable Instrucment Act. A crossed cheque cannot be paid over the counter.
A crossed cheque can be endorsed further. The final endorsee receives the payment.
However NI Act, does not specify what a account payee cheque. The account payee between the crossed line emerged as a general banking practice.
However a cheque having account payee between crossed lines cannot be endorsed and only the account holder will receive the money.
In short crossed cheques can be endorsed and account payee cannot be endorsed.
Posted 3 years, 2 months ago by CA Pulkit Sharma
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