(i) When a cheque is crossed generally the banker should not pay the amount across the counter.
(ii) The receiver of the amount of the cheque can be easily traced in case the cheque is lost or stolen and collected. Thus the crossing assures safety.

In the words of Justice K.C. Wills, a negotiable instrument is one,the property in which is acquired by anyone who takes it bonafide and for value, and withstanding any defect to title in the person from whom he took it.

When the maker or holder of a negotiable instrument signs the name, otherwise that as such maker for the purpose of negotiation, on the back or face thereof, or on a slip of paper annexed there to or so signs for the same purpose a stamped paper intended to be completed as a negotiable instrument, he is said to endorse the same and is called the endorsee.

Characteristics of a promissory note:
(i) A promissory note must be in writing.
(ii) The promise to pay must be unconditional.
(iii) It must be signed by the maker.

(i) The word "Negotiable" means transferable from one person to another in return for consideration.
(ii) The word 'Instrument' means a written document by which a right is created in favour of certain person.
(iii) A negotiable instrument is a document which entitles a person to a certain sum of money and which is transferable from one person to another by mere delivery or by endorsement and delivery.

(i) IFSC code is an alphanumeric code which facilitates electronic fund transfer in India.
(ii) This code uniquely identifies each bank branch participating in the two main Payment and Settlement systems in India.
(iii) The Real Time Gross Settlement (RTGS) and the National Electronic Fund Transfer (NEFT) systems.
(iv) IFSC is an 11 character code.
(v) The first 4 alphabetic characters represent the bank name and the last 6 characters (usually numeric) represent the branch.
(vi) The fifth character is 0 and reserved for future use. This code routes the messages to the destination banks or branch.

(i) MICR code is a character - recognition technology used mainly by the banking industry to ease processing and clearance of cheques and other documents.
(ii) It is found at the bottom of the cheque. It includes bank code, bank account number, cheque number, cheque amount and a control indicator.
(iii) The MICR code helps the banker to ensure the legitimacy or originality of paper documents.
(iv) The special ink used in the MICR code is sensitive to magnetic fields.
(v) It prevents the crime of printing counterfeit cheques or documents using technology.
(vi) The magnetic ink will help discover fake documents.

Crossing is of two types: General crossing and special crossing
General Crossing:
1. It is according to section 123 of the Negotiable Instruments Act, 1881.
2. "Where a cheque bears across its face with 'and company" or any abbreviation between two parallel transverse lines with or without the words 'not negotiable, the cheque shall be deemed to be crossed generally':
Special Crossing:
1. It is according to section 124 of the Negotiable Instruments Act, 1881.
2. "Where a cheque bears across its face an addition of the name of a banker with or without the words 'not negotiable, the cheque shall be deemed to be crossed specially and to be crossed to the bankers".

Characteristics of a bill of exchange
(i)  A bill of exchange is a document in writing.
(ii) The document must contain an order to pay.
(iii) The order must be unconditional.
(iv) The instrument must be signed by the person who draws it.
(v) The name of the person on whom the bill is drawn must be specified in the bill itself.
(vi) The amount that isrequired to be paid must also be specified in the bill.

(i) The word 'Negotiable' means transferable from one person to another in return for consideration
(ii) The word 'Instrument' means a written document by which a right is created in favour of certain person.
(iii) A negotiable instrument is a document which entitles a person to a certain . sum of money and which is transferable from one person to another by mere delivery or by endorsement and delivery.
(iv) The law relating to negotiable instruments is dealt in the Negotiable Instruments Act 1881.
(v) This Act speaks about promissory note, bills of exchange and cheques.

(i) Bearer Instrument: Promissory Note, Bill of Exchange or cheque is payable to bearer is called bearer instrument subject to fulfilment of either of the two conditions:
(1) It must be expressed to be payable
(2) The only or last endorsement should be a blank endorsement.
(ii) Order Instrument: Promissory Note, Bill of Exchange or cheque is payable to order is called Order instrument.
(iii) Inland Instrument: Promissory Note, Bill of Exchange or cheque is an inland instrument subject to the following conditions:
(a) It must be drawn in India
(b) It must be payable in India
(c) It must be drawn upon any person resident in India
(iv) Foreign Instrument: An instrument which is not the inland instrument is called a foreign instrument.
(1) Bill drawn outside India
(2) Bill payable outside India
(3) Bill drawn upon foreign citizens
(v) Ambiguous Instrument: An ambiguous instrument means an instrument which can be construed either as a promissory note or a bill of exchange.
(vi) Inchoate Instrument: It means an incomplete instrument in some respect.

Features of a cheque :
(i) Instrument in writing : A cheque or a bill or a promissory note must be an instrument in writing.Though the law does not prohibit a cheque being written in pencil, bankers never accept it because of risks involved.
(ii) Unconditional order : The instrument must contain an order to pay money.It is not necessary that the word 'order' or its equivalent must be used to make the document a cheque.
(iii) Drawn on a Specified Banker Only: The cheque is always drawn on a specified banker.A cheque vitally differs from a bill in this respect as latter can be drawn on any person including a banker.
(iv) A Certain Sum of Money Only : The order must be for payment of only money. If the banker is asked to deliver securities, the document cannot be called a cheque.Further, the sum ofmoney must be certain.
(v) Payee to be Certain : The cheque must be made payable to a certain person or to the order of a certain person or to the bearer of the instrument.The word, person includes bodies corporate, local authorities, associations, holders of office of an institution etc.
(vi) Signed by the Drawer : The cheque is to be signed by the drawer.Further, it should tally with specimen signature furnished to the bank at the time of opening the account.