The word ‘Lac’ is often confused with a substance used for sealing or varnishing, which can cause confusion.
When it comes to writing checks, even a small mistake can sometimes void the transaction. Despite the widespread use of ATMs and online banking, many people still prefer to use checks, especially for larger transactions. However, it is important to follow the correct procedures when writing checks, especially when it comes to spelling out the numbers.
A common source of confusion arises when writing amounts in millions. For example, if you need Rs. Need to write 10,00,000 (10 lakhs), while the numerical representation is clear, there is often a problem when writing the amount in words. Should you use “million” or “million”?
According to the Reserve Bank of India (RBI), the correct word is “million”. RBI guidelines clearly state that the word ‘Lakh’ should be used in English while writing cheques. The term is found on the RBI website, as well as the use of ‘Lac’ on all official checks issued by banks is not part of the official banking terminology.
While it is unlikely that a check will be voided simply for using “Lak” instead of “Lakh”, it is still recommended to use the latter. The term ‘Lac’ is often confused with a substance used for sealing or varnishing, which can cause confusion. In everyday language, ‘Lakh’ may be used to refer to ‘Lakh’, but in the context of banking, ‘Lakh’ is the correct and preferred term.
Therefore, to avoid any possible problems, it is advisable to write ‘Lakh’ while issuing the cheque.