Will Writing ‘Lac’ on a Cheque Get It Rejected? Here’s What You Should Know
Will Writing 'Lac' on a Cheque Get It Rejected? Here’s What You Should Know
Every time you fill out a cheque, you’re expected to be precise—whether it’s the amount, the signature, or the date. But one thing that often catches people off guard is the spelling of large sums, especially when writing numbers like one lakh. Some write it as ‘Lakh’, others as ‘Lac’. It’s a small difference, but many wonder if it could lead to a serious issue like cheque rejection. Let’s break it down and understand what’s actually acceptable.
What is the difference between ‘Lakh’ and ‘Lac’?
Both terms are commonly used across India to refer to the amount 100,000. However, only ‘Lakh’ is correct in the context of the Indian numbering system. This is the spelling you’ll find on Indian currency notes and official documents. On the other hand, ‘Lac’, while used by many in informal settings, actually refers to a type of resin secreted by insects according to English dictionaries. So while both may be used interchangeably in conversation, they are not technically the same.
What does the RBI say about using ‘Lac’ vs. ‘Lakh’?
The Reserve Bank of India has not released any public instructions for individuals on whether to use ‘Lakh’ or ‘Lac’ while writing cheques. However, it has issued internal guidance to banks, advising them to use ‘Lakh’ as the correct and standard spelling. This preference is clearly reflected on RBI’s official website and printed currency. So while it may not be mandatory for customers, ‘Lakh’ is the officially recommended spelling.
Will my cheque be cancelled if I write ‘Lac’ instead of ‘Lakh’?
No, your cheque will not be cancelled or dishonoured solely because you used the spelling ‘Lac’. Since this spelling is still widely understood in India, and the RBI has not issued any strict public regulation regarding it, most banks accept both versions. The primary focus is on clarity and matching the amount written in words with the amount in figures. As long as that is clear, the spelling alone won’t result in your cheque being rejected.
Should I still use ‘Lakh’ going forward?
Yes, it’s a good idea to stick with ‘Lakh’ especially when dealing with financial or official documents. It’s the correct spelling as per the Indian financial system and ensures consistency with banking standards. Using ‘Lakh’ not only avoids potential confusion but also keeps your paperwork aligned with formal practices.
To sum it up, using ‘Lakh’ is the preferred and correct spelling when writing cheques or other financial documents in India. Even though ‘Lac’ is not technically wrong in everyday usage, it’s not the officially accepted form. That said, your cheque won’t bounce just because you wrote ‘Lac’. Still, getting into the habit of writing ‘Lakh’ is a small but smart step toward maintaining professionalism and accuracy in your financial dealings.
Disclaimer: This article is intended for general informational purposes only.
