Often people get confused while writing the amount in a check whether Lakh or Lac is correct?
Lakh or Lac – which is correct?
Actually, both the words are commonly used in India but according to the English dictionary, the correct spelling is Lakh, which represents 1,00,000 (one lakh). Whereas Lac means a sticky substance (resin) which is obtained from insects and which is used in making varnish, color or sealing wax, that is, the meaning of Lac and Lakh is completely different.
What does RBI say?
The Reserve Bank of India (RBI) has not issued any separate guidelines on this for general customers but there are clear guidelines for banks. According to the master circular of RBI, all banks should use the word Lakh in their official documents and reports. This means that Lakh is considered correct in the official language of banking.
Will the check be canceled due to wrong spelling?
No. For general customers, banks accept both the spellings Lakh and Lac as valid. Therefore, if you have written Lac on the cheque, your check will not be cancelled. Actually, banks see whether the amount matches in words and figures or not. If both match and the check is filled out correctly, the check is not rejected because of spelling.