Cheques Spelling Rule: The use of the word ‘Lakh’ on Cheques is officially recognized by the Reserve Bank of India (RBI) and represents ₹100,000. Although the word ‘Lac’ is also used colloquially, it means resin. The RBI has not issued any strict guidelines for customers, so writing ‘Lac’ will not result in Cheques cancellation.
In today’s banking world, Cheques are a common and important financial tool, requiring the amount to be written in both numbers and words. It’s common for people to confuse the words Lakh and Lac when writing large sums. In the Indian numbering system, Lakh means 100,000, which is the official and commonly used word. Lac, on the other hand, is an English dictionary word that refers to a resin used in varnishes or polishes.
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 used on the RBI’s official website, currency notes, and bank Cheques. Although Lac is also used colloquially, this word is not considered appropriate for any official document or banking transaction.
Clearly, writing “Lak” won’t result in Cheques cancellation, as the RBI hasn’t established strict rules for the general public, and banks generally don’t object to this minor difference. However, professionals and regulatory authorities consider it preferable to write “Lak” on Cheques to avoid fraud or dishonor in the future.
When filling out a Cheques using Lakh, always Cheques the spelling clearly and remember to add “Only” after the amount, such as “Ten Lakh Only,” to ensure the Cheques remains valid. Incorrect spelling and ambiguity increase the risk of a Cheques being rejected.
So next time you fill out a Cheques, opt for the word “Lakh.” This not only complies with banking regulations, but also makes your entry appear professional and neat, ensuring your Cheques clears properly.
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