How To Write Lac On The Cheque?

How To Write Lac On The Cheque?

How To Write Lac On The Cheque?

In finance, cheques are an important tool for conducting transactions. They are a negotiable instrument that can be endorsed in favor of a third party.

When filling out a cheque, it is often confusing whether to use the word ‘lakh’ or ‘lac.’ While it is a common practice to write the amount as lakh, some people choose to use Lac.


A cheque is a form of financial document that a bank can draw or endorse to pay a specified sum. It has a cheque number, date, name of the payee, and an image of the front and backside. It is used to transfer money from one account to another without having to go through the hassle of going through a bank statement.

The market has several types of cheques, including open, crossed, and order cheques. All these cheques are different in some ways and can be used for different purposes.

One of the most interesting facts about cheques is that they can be encashed at any bank across India. The bank checks the cheque details using the MICR code and the Positive Pay process before allowing it to be encashed.

The most common problem faced by people while filling out a cheque is the spelling of a certain amount. While many people write the amount as lakh, several others prefer to use the word Lac to denote the same amount.

In reality, however, the correct spelling of the words ‘lakh’ and ‘lac’ is not difficult to find if you have the right resources. For example, a quick search on Google will yield results such as ‘lac spelling as per rbi’ and ‘lakh spelling in cheques,’ to name a few.

A recent viral WhatsApp forward has posed an important update from the Reserve Bank of India (RBI). The forward claims that the use of ‘lakh’ on a cheque may get dishonored’ and that ‘lac’ is a better spelling to denote the same amount in English. This has raised several questions in the mind of people and prompted them to share their thoughts.


A drawer is a person or firm that issues a draft, directing the bank to pay a specified sum to a third party (the payee). He may be a businessperson or a government officer.

A draft is an official document specifying the sum to be paid and the payee’s name. It can be drawn for anything worth a certain amount of money. The draft may be for a specific sum of money, such as a loan or a commission, or it can be drawn for a specified time, such as a monthly salary.

The word draw is derived from the Latin dragon, which means “to draw” or “drawn.” It is also used to describe the act of drawing pictures or an artist.

While writing a cheque, people often wonder whether they should write the amount in words or digits. This issue is especially important when denoting the number 1,00,000 in words on a cheque.

One way to resolve this confusion is by using the right spelling of the number 1. Lakh, as per Reserve Bank of India (RBI) guidelines.

Another option is to use the numeric version of the amount, such as “two lacks.” This will be easier for a customer unfamiliar with the number system.

However, the correct option is to use a combination of both methods. The numeric version will be written in the space provided, and a word version of the amount will be used in the line below. This is the most common method to write a cheque.

If you have many checks to write, using a combination of both is better. Then, you will be able to quickly fill out all the checks.

If a drawer does not pay the specified amount on his/her cheque within 30 days of receiving a notice from the bank, it is a criminal offense. As per Section 138 of the Negotiable Instruments Act 1881, the drawer can be jailed for up to two years and/or fined.


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A cheque is a piece of paper that orders a bank to pay a specific amount from one person or company to another. It is a common payment method for making safe, secure, and convenient payments.

Cheques are usually issued in the name of a business or an individual and contain information about the bank and the amount paid. They also include a code known as the MICR code.

The MICR code is a nine-digit code that allows a bank to clear and process checks quickly. It is a standard form of identifying a financial institution and can be found on the bottom of all cheques.

It contains information about the bank, including the city code and bank branch code. The code also helps to identify any checks that may be counterfeit and should be rejected by the bank.

The MICR code is a standard part of the banking system in India. The Reserve Bank of India (RBI) has created this code to make the banking system more transparent and efficient.

This code is also a crucial element of the Electronic Clearing System (ECS), which is the technology that allows banks to process and verify cheques. It is a nine-digit code that contains information about the bank, including the city, branch, and bank code.

Many people have questions about the MICR code, including how to find it and what it means. This article answers some of the most common questions about this code and how it works.

The MICR code on a check is printed using a special type of ink that allows a reader to recognize the characters. This process has increased security for the banking industry and can effectively catch fraud.

MICR codes are also useful for encoding other types of information on paper, including credit card invoices and direct mail. In addition, they can be read by computers and sorting machines, making them resistant to counterfeiting.

A check may also contain a routing number, a nine-digit code that identifies the bank branch that holds the account from which the funds are to be drawn. This code is also important for facilitating wire transfers and direct deposits.

Special Crossing

When a cheque bears the name of a specific banker written across its face between two transverse parallel lines, it is called a special crossing. This crossing gives double safety and security to the drawer and the payee.

Moreover, this type of crossing ensures that the payment is made to the banker whose name is written between the parallel lines or his agent. Thus, writing the right details on a cheque is important to protect against any fraud or mistake.

A special crossing can also be made by adding the words “not negotiable” or ” account payee” to the payee’s name. This means that the cheque holder cannot negotiate with the payee to change the amount on the cheque.

Account payee crossing is a way to protect yourself against a cheating assembler. It imposes restrictions on the negotiability of the cheque and requires the assembling banker to credit the return of the cheque to the account mentioned on it.

There are three types of cheque crossings – general, special, and restricted crossed. The first one is general crossing, which can be converted into a special crossing by writing “& Co.” or” Not Negotiable.” This type of crossing is often used to restrict the payee from negotiating with a banker and make the amount of the cheque payable only through the bank mentioned on it or its agent.

The second type is special crossing, which requires the banker’s name to be written across its face between the two parallel transverse lines. This crossing is also important because it limits the payee from negotiating with the paying banker to change the amount on the cheque.

Finally, the last type is restricted crossed. It is a type of crossed cheque that is post-dated and, therefore, can be met later.

Lastly, it should be remembered that a special crossing cannot be changed into a general crossing, so it is important to ensure that the cross is written correctly on the cheque. This can make the difference between losing money or getting paid in full.

How To Write Lac On The Cheque? Basic Steps To Know

When writing a cheque, it’s important to ensure it’s filled out correctly to avoid any errors or confusion. One important element of writing a cheque is including the Lac (Lakh) amount, a term used in South Asia to refer to 100,000 of a particular currency. Here is a guide on how to write Lac on a cheque:

Determine The Amount In Figures:

First, determine the amount you wish to write on the cheque. For example, if you want to write a cheque for 2 Lac rupees, you must write 200,000 in figures.

Write The Amount In Words:

Next, write the amount in words on the cheque. This is important as it helps prevent any fraud or confusion arising from incorrect or unclear writing. For example, if you are writing a cheque for 2 Lac rupees, you must write “Two Lac Rupees only” on the cheque.

Start Writing From The Left:

When writing the amount in words, always start writing from the left-hand side of the cheque, leaving no space between the number and the word.

Use Capital Letters:

Use capital letters when writing the amount in words. This helps to make it easier to read and prevents any confusion or errors.

Be Specific:

Be as specific as possible when writing the amount in words. For example, instead of “One Lac Rupees only,” write “One Lac Fifty Thousand Rupees only” if the amount is INR 150,000.

Write The Currency:

Always include the currency name or symbol when writing the amount in words. For example, write “Two Lac Rupees only” instead of “Two Lac only.”

Double-Check The Amount:

Before writing the cheque, double-check the amount in words and figures to ensure they match. Any discrepancies can confuse and may result in the cheque being rejected.

Sign The Cheque:

Once you have written the Lac amount on the cheque, sign it in the appropriate space to authorize the transaction.

By following these steps, you can ensure that you write the Lac amount on your cheque correctly and accurately. It’s important to take care when filling out a cheque to avoid any errors or confusion that could cause issues with the transaction.


Where should I write LAC on the cheque?

You can write LAC on the top left corner of the cheque, above the date and payee’s name. You can write it in capital letters to make it more visible.

Is it mandatory to write LAC on a cheque?

No, it’s not mandatory to write LAC on a cheque. It’s an instruction that the issuer can give to the bank if they want to use the funds until the cheque is presented for payment.

Can I write LAC on any type of cheque?

Yes, you can write LAC on any type of cheque, including bearer cheques and crossed cheques.

Can I cancel LAC instruction after writing it on a cheque?

Yes, you can cancel the LAC instruction by contacting your bank and requesting them to cancel it. However, it’s important to note that if the cheque has already been presented for payment, the cancellation may not be possible.

How long is LAC valid for?

The validity of LAC depends on the terms and conditions of your bank. Generally, it’s valid for a few months or until the cheque is presented for payment.

Will I be charged any fees for writing LAC on a cheque?

It depends on the terms and conditions of your bank. Some banks may charge a fee for this service, while others may not. It’s best to check with your bank for more information