What is MICR Code?

byPriyanka JuyalLast Updated: January 2, 2023
What is MICR code
What is MICR code

The importance of having accurate and up-to-date information on various bank documents, such as a mobile app, website, passbook, or cheque book, cannot be overstated. This is because these details are frequently used to complete financial transactions. For instance, an IFSC code is necessary to identify a specific bank branch and is required when making electronic fund transfers through NEFT, RTGS, or IMPS. Similarly, a debit card is used to access funds through online, offline, or ATM transactions.

 In this article, we will explore the role of the MICR code on a cheque and define what it is.

What is MICR Code?

“Magnetic Ink Character Recognition” (MICR) is a technology that uses a 9-digit code printed at the bottom of a cheque to quickly and accurately identify and process it. In addition to speeding up the processing of cheques, MICR has other features such as:

  • MICR is located at the bottom of the cheque
  • It includes bank-specific information such as the bank code, account details, cheque number, and amount
  • MICR codes are composed of various characters
  • Unlike IFSC codes, MICR codes are widely accepted for cross-border fund transfers
  • MICR codes cannot be easily copied due to their unique font and use of magnetic ink
  • Indian banks each have their own MICR codes

What is the Format of a MICR Code?

A MICR code is a nine-digit identification code used to identify banks and branches participating in the Electronic Clearing System (ECS). The digits in groups of three within the code represent specific information about the bank.

  • The first three digits of the MICR code represent the city code.
  • The middle three digits represent the bank code.
  • The final three digits represent the branch code.

Where Can I Find the MICR Code?

The MICR code can be found in the following ways by an account holder:

  • The MICR code can be found at the bottom of the cheque.
  • The Reserve Bank of India’s official website provides access to this code.

How Does the MICR Line Work?

MICR codes are printed using magnetic ink, which helps to prevent duplication and allows computers to accurately read and decode information such as cheque numbers, account numbers, and routing numbers from MICR lines. In addition to preventing duplication, the use of magnetic ink allows computers to accurately read characters that may have been covered by bank stamps, cancellation marks, signatures, or other types of marks or inks.

Conclusion

The information provided by a bank through its mobile banking application, website, or banking kit serves a specific purpose and is used by both the bank and its users to facilitate and record transactions. This information is accessed through various mediums, such as mobile apps, websites, or banking kits, to make it easier to complete financial transactions.

FAQs

What does the MICR code mean?

Magnetic Ink Character Recognition” can be referred to as MICR for short. This term is often used in relation to cheques, and refers to the series of numbers and symbols printed at the bottom of the check.

Where can I check my bank’s MICR code?

You can check your bank’s MICR code by contacting your bank or by looking for the code on your personal checks or bank statements. You can also check the bank’s website or call the customer service hotline for more information.

What is the character limit of a MICR code?

You can locate the MICR code for your bank by looking at the bottom of a check. This code is written in special magnetic ink and contains important information about the bank and its branches. You can also find the MICR code for your bank on the Reserve Bank of India’s website. The MICR code is used to help automate the processing of checks and to ensure that they are routed to the correct bank for processing.

Is the MICR code unique?

Yes, the MICR code is unique to each bank and its branches. The MICR code consists of a series of numbers and symbols that are printed at the bottom of a check and are written in special magnetic ink.

Priyanka Juyal- a Writer with a curious mind & vision to create the best out of words. Other times, see her playing the guitar, sketching or narrating folk tales!

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