When filling out a cheque, the question of whether to use ‘lakh’ or ‘lac’ arises when writing the amount in words. While the Reserve Bank of India (RBI) does not limit the use of either spelling, it’s master circular states that lakh is the correct word to use when representing the number 1,00,000 in English.
‘Lakh’ or ‘Lac’: Which one to write on the cheque?
From the intro, you understand the fact that it means that in terms of official banking language, lakh is the appropriate choice. The RBI’s website and all cheques issued by banks also use lakh, not lac, to represent amounts equal to or greater than Rs 1,00,000.
However, colloquially, it has become common practice to use lac to denote such amounts. As a common person depositing a cheque, you may use either lakh or lac, but bank officials must use lakh when issuing cheques on behalf of their banks.
There was a false rumour spreading across WhatsApp or social media that there’s an RBI regulation that mandates users to write ‘Lakh’ on cheques, this by the way is incorrect. There has been no such regulation officially and as we said though ‘Lakh’ is the correct term, one can also use ‘Lac’ on the cheque.
What is the correct spelling for cheques according to RBI: ‘Lakh’ or ‘Lac’?
In terms of official banking language, lakh is the appropriate choice. The RBI’s website and all cheques issued by banks also use lakh, not lac, to represent amounts equal to or greater than Rs 1,00,000.
