MICR- Here’s what makes it different from IFSC code!

What is MICR code

Banks offer a banking welcome kit to the account holders after opening an account with them. The banking welcome kit consists of a passbook, chequebook, debit card and other required banking credentials. The kit is given to the account holder to make and record transactions easily. Apart from that, banks serve their customers through mobile applications and net banking. 

Be it on the bank’s mobile application, website, or on the passbook or chequebook, every detail is of great importance. All of these details are somewhere or the other time is used to complete the transactions. For example- IFSC code is used to track the bank’s branch and is required to be entered to complete transactions made via NEFT, RTGS, IMPS, similarly, a debit card is used to make transactions online, offline or to withdraw money from the ATMs.

In this blog, we will understand the importance of a MICR code on a cheque and its definition. 

What is MICR code?

MICR is denoted as Magnetic Ink Character Recognition. It is printed on the bottom of the cheque and enables the identification of the cheque. MICR is used for the faster processing of cheques. Further, it can be defined as- 

  • MICR is 9-digit code
  • It is printed at the bottom of the cheque
  • It includes bank details like bank code, account details, cheque number, amount 
  • A MICR code is made up of different characters 
  • Unlike IFSC code, MICR code is worldwide accepted to transfer money from one country to another part of the world
  • A MICR code cannot be copied as it is printed using magnetic ink and unique fonts
  • The banks in India have their own unique MICR codes

What is the format of a MICR code?

A MICR code is given to banks to identify the banks and branches who participate in the Electronic Clearing System (ECS). It is a 9 digit code and the digits in the group of 3 depict the following information- 

  • First three digits represent the city code
  • Three digits in the middle order represent the bank code
  • Last three digits at the end represent branch code

Where can I find the MICR code?

An account holder can find the MICR code in the following ways- 

How does the MICR line work?

MICR code is printed by using magnetic ink, thus, the chances of duplication reduces. MICR line enables a computer to read, record and decode numbers and information like cheque number, account number and routing number. 

Other than reducing the chances of duplication, the magnetic ink allows a computer to read the characters even if they are covered with bank stamps, cancellation marks, signatures or other kinds of marks or inks.

Read More: All You Need to know about Cheques

Conclusion

Any detail offered by the bank in its mobile banking application, website or its banking kit portrays a purpose and use. The details provided through any of the mediums are used by the bank itself and by users to complete the transaction and record the same effortlessly.

FAQs
What is the meaning of MICR code?
MICR code is Magnetic Ink Character Recognition. It is written at the bottom of the cheque and carries the details of the bank and its branches.
Where can I check my bank’s MICR code?
You can check your bank’s MICR code at the cheque’s bottom. It can also be found on the website of the Reserve Bank of India.
What is the character limit of a MICR code?
An MICR code is a 9 digit code, the first three characters of it show the city code, whereas the next three digits define the bank code and the last three characters show the bank’s branch code.
Is MICR code unique?
Yes, every bank has its own unique MICR code.
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