a. A cheque is defined under Section 72 of the Bills of Exchange Act, 1961 (Act 55) in Ghana as a bill of exchange drawn on a banker payable on demand. It is an unconditional order in writing, addressed by one person (the drawer) to a banker (the drawee), signed by the drawer, requiring the banker to pay on demand a sum certain in money to or to the order of a specified person (the payee) or to bearer. In practical terms, cheques serve as a common payment instrument in Ghanaian banking, facilitating cashless transactions while providing a record for both parties. For instance, in daily operations at banks like GCB Bank, cheques are used for withdrawals, payments to suppliers, or salary disbursements, ensuring compliance with anti-money laundering regulations under the Anti-Money Laundering Act, 2008 (Act 749), as amended.

b. Crossings on cheques are markings that restrict how the cheque can be paid, primarily to enhance security and prevent fraud. There are two main types: general crossing and special crossing.

• General Crossing: This involves drawing two parallel transverse lines across the face of the cheque, with or without the words “and company” or “& Co.” or “not negotiable.” Its effect is that the cheque must be paid into a bank account and cannot be cashed over the counter. This protects against theft, as seen in cases where stolen uncrossed cheques are cashed fraudulently. Under Section 76 of Act 55, the paying banker is protected if paid to a banker.
• Special Crossing: This adds the name of a specific bank between the parallel lines, e.g., “GCB Bank Only.” The effect is that the cheque must be paid only through the named bank, further restricting encashment. If “not negotiable” is added, it removes the negotiability, meaning a transferee cannot get better title than the transferor (Section 80, Act 55). In practice, at Ecobank Ghana, special crossings are recommended for high-value cheques to mitigate risks during the 2017-2019 banking cleanup when fraud incidents rose.

Additionally, “Account Payee” crossing, though not statutory, is treated as a direction to collect for the named payee’s account only, reducing misuse.

c. The authority of a banker to pay cheques on behalf of a customer can be revoked or determined under the following four circumstances:

1. Countermand of Payment (Stop Payment Order): The customer issues a written instruction to the bank to stop payment on a specific cheque. This must be clear and unambiguous, as per common law principles applied in Ghana. For example, if a customer at Stanbic Bank Ghana discovers a cheque was issued in error, they can revoke authority before presentation.
2. Death of the Customer: Upon notice of the customer’s death, the banker’s authority terminates automatically. Under Ghanaian law, including the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930), the account is frozen until probate or letters of administration are presented.
3. Mental Incapacity: If the customer becomes mentally incapacitated, as determined by a court order under the Mental Health Act, 2012 (Act 846), the authority ends. Banks like Access Bank Ghana require legal documentation to halt operations.
4. Bankruptcy or Insolvency: When a customer is adjudged bankrupt under the Insolvency Act, 2006 (Act 708), or a winding-up order is made for a corporate customer, the authority is determined. The bank must cease payments to avoid preferences.

These ensure banks comply with regulatory directives from the Bank of Ghana, avoiding liabilities.

d. A banker’s draft is not a cheque because it is drawn by a bank on itself or another branch/bank, whereas a cheque is drawn by a customer on their banker. Under Section 72 of Act 55, a cheque must be drawn on a banker by a non-banker, payable on demand. A banker’s draft is essentially a bill of exchange where the drawer and drawee are the same institution or branches, making it more secure and akin to cash. In Ghanaian practice, drafts are used for guaranteed payments, like in property transactions, and do not attract the same crossing or statutory protections as cheques. For example, during the DDEP in 2022-2024, banks issued drafts for settlements to ensure irrevocability.