"A crossed cheque is a safer mode of payment as compared to an open cheque." Justify.

For the statement — A crossed cheque is indeed a safer mode of payment than an open cheque.

Justification:

1. Payment only through bank account — A crossed cheque can only be paid into the bank account of the payee; it cannot be encashed across the counter. This ensures that payment goes only to the intended person.

2. Reduced risk of theft or loss — If a crossed cheque is lost or stolen, the finder cannot encash it directly at the counter, since it must be deposited into a bank account in the payee's name.

3. Audit trail — Since payment is made through banking channels, there is a clear record of the transaction, making fraud detection easier.

4. 'A/c Payee' restriction — When a cheque is crossed 'Account Payee', the bank credits it only to the named payee's account, providing maximum safety.