Question

Across the face of a cheque bears the words 'Peoples Bank'. What is its significance?

• A. It is an extraneous matter appearing on the cheque. Hence should be returned
• B. The cheque is specially crossed in favour of Peoples Bank
• C. It is not a crossing as it does not contain two parallel lines
• D. None of the above

Answer 1

The correct option is B The cheque is specially crossed in favour of Peoples Bank

The words 'Peoples Bank' across the face of the cheque states that the cheque is specially crossed in favor of Peoples Bank which is printed in all the cheques issued under all commercial banks.