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The term ‘Lac’ is often confused with a substance used for sealing or varnishing, which can create confusion.
It is important to follow the correct procedures when writing a cheque.
When it comes to writing cheques, even a minor mistake can sometimes lead to the cancellation of the transaction. Despite the widespread use of ATMs and online banking, many people still prefer to use cheques, particularly for large transactions. However, it is important to follow the correct procedures when writing a cheque, especially when it comes to the spelling of numbers.
One common source of confusion arises when writing amounts in lakhs. For example, if you need to write Rs 10,00,000 (10 lakh), while the numerical representation is clear, the issue often comes up when writing the amount in words. Should you use “Lakh” or “Lac”?
According to the Reserve Bank of India (RBI), the correct term is “lakh”. The RBI guidelines clearly state that when writing checks, the term ‘lakh’ should be used in English. This is the term found on the RBI website, as well as on all official cheques issued by banks. The use of ‘Lac’ is not part of the official banking terminology.
While it’s unlikely that a check will be cancelled solely for using “Lac” instead of “Lakh”, it is still recommended to use the latter. The term ‘Lac’ is often confused with a substance used for sealing or varnishing, which can create confusion. In everyday language, ‘Lac’ may be used to refer to ‘Lakh’, but in the context of banking, ‘Lakh’ is the correct and preferred term.
Therefore, to avoid any potential issues, it’s advisable to write ‘Lakh’ when issuing a cheque.
