Bank Check Mistake: While filling cheque, most of the people get confused about ‘Lakh’ and ‘Lac’. However, people use both the words. But do you know what the RBI rules say about this? Which of these two words is correct and which is incorrect? Know in this article…
Is Lac Correct on Check RBI Rules: While filling a bank cheque, have you ever wondered whether ‘Lakh’ or ‘Lac’ is correct while writing ₹1 lakh? This small spelling problem often leaves people in confusion. The interesting thing is that even though both the words sound similar, one of them is right and the other is wrong as per RBI rules. Because of which a small mistake or spelling habit while filling a check can put your entire transaction at a standstill? Let us know which of the two words is correct and what should be written on the cheque…
Lakh or Lac, what do you write on a cheque?
When you give someone a check of Rs 1 lakh or more, what do you write while writing the amount? Lakh or Lac? Many people use both these words. This may be because of their habit. Most of the people repeatedly write Lac, due to which they use the same word on checks also, but Reserve Bank of India (RBI) has a different rule regarding this.
Will writing ‘Lac’ get the check rejected?
Now let us remove the biggest fear from your mind. If you have written ‘One Lac Rupees Only’ on your check to represent ₹1 lakh in words, then do not worry at all. Your money will not get stuck anywhere nor will the bank cancel or reject your cheque. Both these words have been in use in the Indian banking system for a very long time. Banks know very well that the account holder means only Rs 1 lakh. Therefore, your check will never be dishonored because of writing ‘Lac’.
What does Lakh mean, where is it used?
It is part of our Indian counting system. In Hindi and Indian culture, ‘Lakh’ is always used for 1,00,000. It is considered most perfect for official work.
Meaning of Lac and where is it used?
If we talk about English dictionary, then ‘Lac’ means a kind of resin or something made from insects, which is used in sealing wax or polish like lacquer bangles. But in India, due to shortcuts in banking, it is interpreted only in terms of money.
What does the official rule of RBI say?
Now let’s talk about what the rules and regulations say? Keeping in view the convenience of the general public, RBI has not made any such strict rule which bans writing ‘Lac’. Both the terms are accepted by the bank. But keep in mind that if you look at the master circular of RBI, official website or government documents related to currency, the word ‘Lakh’ is used everywhere. That is, according to government and official standards, it is best to write ‘Lakh’.
What should you do when cashing a bank cheque?
Even though writing ‘Lac’ will not stop your work, financial experts always advise that we should maintain uniformity in banking. When you write ‘Lakh’, the scope for any kind of misunderstanding or spelling dispute in financial documents is completely eliminated. Therefore, it is a good habit that you should always write ‘Lakh’.
Take special care of these 3 things while filling the cheque.
- After writing the amount in words, write ‘Only’ at the end like – One Lakh Rupees Only, so that no one can add anything else.
- While writing numbers in the box, never forget to put the slash (/-) sign after the amount.
- If there is any kind of overwriting or cutting on the cheque, banks immediately reject it, no matter what your spelling is. Therefore, definitely avoid biting.