How can an A/C PAYEE check be Encashed?

By issuing an account payee cheque, the basic intention of the cheque issuer (drawer) is to make payment through the credit of account and not in cash across the counter. All respective banks are bound by this mandate of the drawer. So you have to get to the root of the thing if you don't have a bank account nor wish to have one. Contact the drawer to authentically cancel the A/c Payee crossing or issue you a fresh bearer or an order cheque. Further, if the amount is equal to or in excess of Rs.10,000/=, an account payee cheque payment is in the interest of both of you - from Income Tax point of view.

Account Payee

What if the check was chopped with ' A/C Payee Only' but didn't cross out the bearer? With clearly stated the company name? Can the bearer take the cash away?

by credit to the payee"s account.

Refer to drawer.
Request drawer to delete Crossing.
If cheque from any institute, they may not accept your request.

It is standard banking practice that an A/c Payee check, is never paid in cash.
Its always paid through clearing or collection,
wherein the proceeds of the check, is credited to the account of the person to whom it was endorsed.

Its highly imprudent practice
for a banker to allow cash payment
instead of paying thru a/c credit.
No banker will ever do that. Then he has no legal protection.

But, there is a way to encash an a/c payee cheque.
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For that the crossing "A/c Payee" has to be opened.

Opening of a crossing can be done only by one person.

i.e. the one who has put the crossing or who has issued the check.



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An Account Payee cheque given by the individual/firm to a person/company can be encashed only if the individual/firm has a Bank account and presents the cheque for realisation through his Bank.
If the individual/firm does not have an account the Individual/firm should open an account and then present the cheque for realisation.

can't be cashed over the counter. need to be deposited into an account.

read

It can only be cashed after being put into the account of the person named on the chq.