Banks have become an essential part of our daily lives. Whether it’s withdrawing cash, depositing funds, or making payments, most of us interact with banks regularly. Cheques remain a common method of payment, and if you’ve ever issued or received one, you’ll know that the amount must be written in both words and figures. But have you ever noticed the variation in spelling when writing large sums? Some people write ‘Lakh’, while others prefer ‘Lac’. So, which one is correct? And more importantly, could using the ‘wrong’ spelling cause your cheque to be cancelled?
‘Lakh’ is the spelling that directly reflects the Indian numbering system. ‘Lac’, on the other hand, is also used by some, but it means something entirely different in the English dictionary. According to standard English dictionaries, Lakh refers to the number 100,000. Lac refers to a resinous substance secreted by certain insects, used in varnish, polish, and sealing wax.
What Do Banks Consider Correct? Interestingly, the Reserve Bank of India (RBI) has not issued any guidelines for the general public regarding whether to use ‘Lakh’ or ‘Lac’ on cheques. However, it has issued internal directives to banks. According to the RBI’s Master Circular, the word ‘Lakh’ should be used as the correct spelling for 100,000 in English. This preference is evident on RBI currency notes and its official website, where ‘Lakh’ is consistently used.
Will My Cheque Be Cancelled If I Use ‘Lac’? You don’t have to worry as using ‘Lac’ instead of ‘Lakh’ will not lead to your cheque being cancelled or dishonoured. Since both spellings are commonly used in India and the RBI has not issued any strict rules for consumers, most banks do not object to either version.
In short, both ‘Lakh’ and ‘Lac’ are accepted when writing amounts in words on cheques. ‘Lakh’ is the preferred and official spelling as per the Reserve Bank. However, your cheque will not bounce simply due to this spelling variation. Still, for consistency and to align with official standards, it’s a good habit to use ‘Lakh’ when writing amounts in English, especially on financial documents.
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