In today’s banking era, check is a common and important financial tool, in which the amount is required to be written in numbers as well as in words. It is often seen that while writing large amounts of money, people get confused between Lakh and Lac. In the Indian numbering system, Lakh means 1,00,000 i.e. one lakh, which is the official and popular word. Lac is a word from the English dictionary, which means a resin, which is used in varnish or polish.
The Reserve Bank of India (RBI) has clarified in its internal guidelines that only the word Lakh should be used in banking and financial documents. Lakh is also mentioned on the official website of RBI, currency notes and bank cheques. Although Lac is also used in common parlance, this word is not considered suitable for any official document or banking transaction.
It can be clearly said that writing Lac will not cancel the check because RBI has not made strict rules for the general public and banks also generally do not object to this minor difference. Still, as per professional and rules, it is considered better to write Lakh only in the cheque, so that any fraud or rejection can be avoided in future.
While filling the cheque, always check the spelling clearly while using Lakh and do not forget to add Only after the amount, like “Ten Lakh Only” so that the validity of the check remains. Wrong wording and ambiguity increase the risk of check cancellation.
Therefore, next time whenever you fill a cheque, give priority to the word Lakh. This not only conforms to banking regulations, but also makes your entry look professional and neat, allowing your check to clear correctly.