Chapter XIV - Of Crossed Cheques
Section 126
Section 126: Payment of cheque crossed generally or specially
Section 126 restricts whom the drawee bank may pay when a cheque carries a general or special crossing.
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Need advice on Section 126?
This article is for general information. Refer to the Negotiable Instruments Act, 1881 official text for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
Where a cheque is crossed generally, the banker on whom it is drawn shall not pay it otherwise than to a banker.
Where a cheque is crossed specially, the banker on whom it is drawn shall not pay it otherwise than to the banker to whom it is crossed, or his agent for collection.
Applicability and limits
For a general crossing, payment must be to a banker. For a special crossing, the permitted recipient is the named banker or its agent for collection.
These are different payment routes. A general crossing does not identify one particular banker, while a special crossing does; assess other restrictions, including section 130 wording, separately.
Hypothetical example
Hypothetical: a cheque specially crossed to Bank A is presented for payment through Bank B. The drawee checks whether Bank B is Bank A’s collection agent before treating that route as permitted.
Evidence and decision flow
Identify whether the cheque is generally or specially crossed.
Match the proposed payment recipient to the applicable statutory route.
Keep the crossing image and any collection-agency evidence with the payment record.
Practical checklist
Do
- Identify whether the cheque is generally or specially crossed.
- Match the proposed payment recipient to the applicable statutory route.
- Keep the crossing image and any collection-agency evidence with the payment record.
Avoid
- These are different payment routes. A general crossing does not identify one particular banker, while a special crossing does; assess other restrictions, including section 130 wording, separately.
Glossary
- Drawee bank
- The banker on whom the cheque is drawn.
- Collection route
- The permitted banker or collection agent through whom payment is made.
Frequently asked questions
Can a generally crossed cheque be paid otherwise than to a banker?
Section 126 prohibits that payment route.
Can a specially crossed cheque go to any banker?
No. The section specifies the named banker or its collection agent.
Does a crossing alone resolve title defects?
No. Payment routing and title are distinct issues; check the applicable title provisions as well.
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026