Lakh vs Lac in cheque: RBI’s big name, if written wrong the cheque will be returned

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Cheque Spelling rule: Many people get confused between ‘Lakh’ and ‘Lac’ when writing the amount on a Cheque. ‘Lakh’ is part of the Indian numbering system, and according to the RBI, ‘Lakh’ should officially be used. But can writing ‘Lac’ get your check cancelled? Let’s find out.

Cheque Spelling Rules: Banks have become an integral part of our daily lives these days. We often make payments using Cheque , which require the amount to be written in both words and numbers. But have you ever wondered why some people write “Lakh” and others “Lac”? What’s correct, and what’s incorrect? Could a check be canceled?

What’s the difference between ‘Lakh’ and ‘Lac’?
Actually, ‘Lakh’ is part of the Indian numbering system and means 100,000, or one lakh. Meanwhile, the word ‘Lac’ is used in the English dictionary for a resin (a substance produced by the lac insect) used in varnishes and polishes. Therefore, technically, ‘Lakh’ is the correct word when referring to money or an amount.

What does the RBI say on this?
Interestingly, the Reserve Bank of India (RBI) hasn’t issued any direct instructions on this matter to the general public. If you write ‘Lac’ on a check, there’s no chance it will be cancelled. However, according to RBI’s internal guidelines, ‘Lakh’ should be used on banking documents and official notes. This is why ‘Lakh’ is always written on the RBI website and currency notes.

Since both words are commonly used in India and the RBI hasn’t set any strict rules for this, banks generally don’t object to it.

So what’s the correct word?
If you’re asked which of the two is the correct word, the answer would be ‘Lakh’. This is not only officially the correct word, but it also complies with the Indian banking system and RBI standards. Therefore, try to use ‘Lakh’ on every financial document, especially checks, so your entry looks neat and professional.

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