Lakh Spelling : ‘Lac’ or ‘Lakh’ on a cheque? What is the correct spelling; 99% people make this mistake, read RBI rule…

Lakh Spelling : Even in the era of communication and digital transactions, bank ‘cheque’ is still considered as a very important and safe option for exchanging large sums of money. However, small mistakes in writing checks often lead to huge financial losses or heartache. The biggest confusion arises when writing the amount ‘Lakh’. Many on check ‘Lac’ Some write ‘Lakh’ writes Everyone needs to know exactly which spelling is correct and what the Reserve Bank of India (RBI) says about it. So let’s find out about it…

Difference between both words according to dictionary

According to the English dictionary both the words ‘Lac’ and ‘Lakh’ that we use have completely different meanings.

• Lakhs : This word is used for the number 1,00,000 (one lakh). This word is derived from the original Sanskrit word ‘laksh’. So always in money transactions ‘Lakh’ This is the correct spelling.
• Lac: This word does not mean the number of money. In scientific terms, ‘Lac’ is a sticky substance (which we call wax or ‘lac’ used for sealing) that comes from the bodies of certain insects that live on trees. Bangles and other items are made from it.

So, if we consider grammar and meaning, when dealing with money ‘Lakh’ This spelling is most accurate and correct. Lakh Spelling

What do the RBI rules say?

In all official documents, circulars and annual reports of the Reserve Bank of India (RBI), which regulates the banking sector, always refer to the figure ‘Lakh’. ‘Lakh’ This spelling is used. RBI does not recognize the term ‘Lac’ as official. The word ‘Lakh’ has become standard in the digital system of banking and data entry as well. Lakh Spelling

Does writing ‘Lac’ cause the check to be rejected or bounced?

Many customers fear that writing ‘Lac’ on a check will result in the bank rejecting it. So the answer is ‘no’. It is like that. In the Indian banking system, both the words ‘Lac’ and ‘Lakh’ are understood to mean one lakh. Bank employees usually do not reject a customer’s check on this one word alone. But, to avoid any kind of technical hurdle or future confusion, customers should always make a habit of writing ‘Lakh’. Lakh Spelling

Take special care of ‘these’ things while writing a cheque

• While writing the amount on the cheque, it should be written in clear letters in English or Marathi. (eg One Lakh Only or One Lakh Rupees Only).
• Be sure to use ‘Only’ or ‘/’ (slash) symbol at the end of the amount, so that no one can manipulate it further.
• Do not overwrite or tamper anywhere on the cheque. This may cause the check to be rejected outright. Lakh Spelling

Writing ‘Lac’ on the check will not get you stuck, but considering the legal and official banking language ‘Lakh’ It is safest and correct to use this spelling. Keep this in mind next time you deposit a bank cheque. Lakh Spelling