Pranjal (Student CA IPC / IPCC) (531 Points)
07 July 2016Recently RBI has issued guideline whereby writing lac in cheques has been prohibited. Could any one provide us with a copy of the Master Circular in this regard.
VikramKumar Thanvi
(CA Business)
(21 Points)
Replied 20 July 2016
No link found on web assuring this news.
However all websites of RBI use the word "LAKH" and not "LAC"
So better to write LAKH on cheque.
Prevention is always better than cure.
Anil Mahadeo More
(ACCOUNTANT)
(28 Points)
Replied 26 November 2016
RBI/ 2008-2009/72
DBOD. AML. BC. No. 12 /14 .01.001/2008-09
July 1, 2008
The Chairman/CEOs of all Scheduled Commercial Banks ( Excluding RRBs) /
all Financial Institutions
Dear Sir,
Master Circular – Know Your Customer (KYC) norms /
Anti-Money Laundering (AML) standards/
Combating of Financing of Terrorism (CFT)/Obligation of banks under PMLA, 2002
Reserve Bank of India has issued regulatory guidelines on Know Your Customer (KYC) norms / Anti Money Laundering (AML) Standards / Combating of Financing of Terrorism (CFT) from time to time. This Master Circular consolidates all the guidelines issued by Reserve Bank of India on KYC/AML/CFT norms up to June 30, 2008.
2. This Master Circular has been placed on the RBI website (https://www.rbi.org.in).
Yours faithfully,
(Vinay Baijal)
Chief General Manager
Siddharth Goel
(Chartered Accountant)
(3031 Points)
Replied 20 June 2018
Hi,
The official website of RBI uses "Lakhs" consistently throughout the website and hence it should be followed in all correspondences.
RBI is meticulous in the use of words and spellings in all its circulars, policies, research papers, annual reports, and publications. It prefers lakh, which is in line with the idiomatic usage.
As per master circular issued by RBI to its operating banks suggests usage of lakh than lac. But the draft of RBI instruction is not available for public since its a correspondence between central bank and other banks.
Monu Prajapati
(45 Points)
Replied 07 February 2020
As per the master circular there is not mandatorily requirement of the word "Lakh" and "Lac" to be written on cheque issuance, now it depends on individul preference what he feels better he can use. But it is suggested not to write "Lakhs: and "Lacs" it should only be written as "Lakh" and "Lac"
shahyar husain
(1240 Points)
Replied 05 December 2020
Ritik Chopra
(student)
(8128 Points)
Replied 12 February 2021
RBI has not stated any such rule which has to be used whether 'lakh' and 'lac'. Both words 'lakh' and 'lac' are acceptable.
CAclubindia
