‘Lakh’ Or ‘Lac’? Here’s What You Need To Know When Writing A Cheque

Last Updated: November 28, 2024, 18:03 IST

The term ‘Lac’ is commonly perplexed with a compound utilized for securing or varnishing, which can develop complication.

When it concerns creating cheques, also a small blunder can occasionally cause the termination of the deal. Despite the extensive use Atm machines and electronic banking, many individuals still like to utilize cheques, especially for big purchases. However, it is essential to adhere to the right treatments when creating a cheque, particularly when it concerns the punctuation of numbers.

One usual resource of complication occurs when creating quantities in lakhs. For instance, if you require to compose Rs 10,00,000 (10 lakh), while the mathematical depiction is clear, the concern commonly shows up when creating the quantity in words. Should you utilize “Lakh” or “Lac”?

According to the Reserve Bank of India (RBI), the right 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” rather than “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 stay clear of any kind of possible concerns, it’s suggested to compose ‘Lakh’ when releasing a cheque.