Lakh or Lac: Which Is Correct for Your Cheque?
Lakh or Lac: Which Is Correct for Your Cheque?
Despite the growing use of ATMs and online banking, many still prefer cheques for large transactions. However, even a small mistake on a cheque can lead to rejection. Writing numbers in words, especially for amounts in lakhs, often causes confusion.
For instance, if you need to write ₹10,00,000 (10 lakh) on a cheque, the numerical part is straightforward. But questions arise while writing the amount in words: Should it be “Lakh” or “Lac”?
The Reserve Bank of India (RBI) provides clarity on this. According to RBI guidelines, the correct term to use on cheques is “Lakh.” This word is officially mentioned on the RBI website and used on all bank-issued cheques. The term “Lac” is not part of official banking terminology.
While writing “Lac” instead of “Lakh” is unlikely to invalidate a cheque, it is still recommended to use the latter. The term “Lac” can also refer to a sealing or varnishing material, which might create confusion.
In informal language, both “Lakh” and “Lac” are commonly understood. But in banking, “Lakh” is the correct and preferred term.
To avoid potential issues, always follow RBI’s recommendation and write “Lakh” while filling out cheques. Proper usage ensures clarity and reduces chances of errors in transactions.
Whether you are issuing or receiving a cheque, following this guideline can help maintain precision and prevent avoidable rejections.
