There are a lot of questions regarding Account Payee cheque and crossed cheque the difference so let’s discuss them:

Account Payee Cheque (A/c Payee):

Account payee cheque
Source: BHIM UPI, Fastag, Google Pay, IMPS, NEFT and PhonePay

It also knew and written as the A/c Payee is a cheque that you can issue when you want to redirect or send the amount to a specific person or some entity.

It means that the person whose name is written on the cheque can quickly transfer the money to their account, but the amount cannot be given as cash to the branch.

Meaning of crossed cheque:

Source: Quora

A crossed Cheque is issued when the person makes two parallel lines on the cheque’s top
edge. This reference means that the money which is stated on the cheque will be directed to
the account of the person mentioned on the cheque.

A major difference between Account Payee Cheque and Cross Cheque is that the Cross Cheque can be easily endorsed.

Withdrawal/ Cashing:

What does it mean by the endorsement of Cross Cheque?

Account payee cheque
Source: Kalyan City Life

Let’s take an example to explain this situation: if there are three people, Ajay, Vijay, and Sanjay. So Ajay needs to give Rs 2 lakh to Sanjay, and Sanjay needs to give Vijay the same amount.

In this case, Ajay will provide a cheque to Sanjay with two parallel lines on the top left corner of the cheque. So if Sanjay doesn’t want to put the money in his account and directly give the money to Vijay, can he do that?

Yes, he can do so because Ajay gave him a Crossed Cheque. Sanjay can easily endorse the cheque, but he just needs to put the details on the cheque’s back. If the cheque is credited easily, then it is honored, but if not, it will be dishonored.

In such a situation, Vijay can easily put up a case on Sanjay, and Sanjay can do the same to Ajay in return.

Account Payee Cheque (A/c Payee Cheque):

Source: BasuNivesh

Account Payee Cheque is when there are two parallel lines on the top corner of the cheque and then write the words A/c payee in between those lines. In such a case, the cheque will be considered as an Account Payee Cheque.

The money will be credited to the account of the person or entity mentioned on the cheque. You won’t be able to endorse this cheque because it isn’t a cross cheque.

Why and how do we write Account Payee Cheque ( A/c Payee only)?

Account payee cheque
Source: Think Plan Do Act

The best way to mention this is by writing A/c payee between the parallel lines of the cheque. Some people write it on the top of the lines, but there is a format in which the bank accepts it as an Account Payee Cheque.

The words are written so that there are fewer chances of any fraud or mistake happening when it comes to the cheque.



Read more