What is MICR Code?

What is MICR code

Every detail matters, whether it’s on the bank’s mobile app, website, passbook or cheque book. All of these details are used at some point in time to complete the transactions. For example, an IFSC code is used to track the bank’s branch and is required to be entered to complete transactions made via NEFT, RTGS, and IMPS. Similarly, a debit card is used to make online, offline, or ATM withdrawals.

In this blog, we will learn about the significance of a MICR code on a cheque as well as its definition.

What is MICR Code?

MICR stands for Magnetic Ink Character Recognition. It is a 9 digit code printed on the bottom of the cheque and aids in the identification of the cheque. MICR is used to speed up the processing of cheques. Other features of MICR include:

  • It appears at the bottom of the cheque
  • It contains bank information such as the bank code, account information, cheque number, and amount
  • A MICR code is made up of various characters
  • Unlike the IFSC code, the MICR code is universally accepted for transferring funds from one country to another
  • MICR codes cannot be copied because they are printed with magnetic ink and unique fonts
  • Banks in India have their own MICR codes.

What is the Format of a MICR Code?

Banks are assigned a MICR code to identify the banks and branches that participate in the Electronic Clearing System (ECS). It is a 9-digit code, and the digits in the group of three represent the following information:

  • The first three digits are the city code
  • Bank code is represented by three digits in the middle order
  • 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 is located at the bottom of the cheque
  • It is available on the Reserve Bank of India’s official website

How does the MICR Line work?

MICR codes are printed with magnetic ink, which reduces the possibility of duplication. MICR lines allow computers to read, record, and decode numbers and information such as cheque numbers, account numbers, and routing numbers.

Apart from reducing the possibility of duplication, magnetic ink allows a computer to read characters that have been covered with bank stamps, cancellation marks, signatures, or other types of marks or inks.

Conclusion

Any information provided by the bank in its mobile banking application, website, or banking kit depicts a purpose and use. The information provided through any of the mediums is used by both the bank and the users to easily complete and record the transaction.

FAQs
What does the MICR code mean?
MICR stands for Magnetic Ink Character Recognition. It is written at the bottom of the cheque and contains the bank’s and its branches’ information.
Where can I check my bank’s MICR code?
The MICR code of your bank can be found at the bottom of the cheque. It is also available on the Reserve Bank of India’s website.
What is the character limit of a MICR code?
A MICR code is a 9-digit code in which the first three characters represent the city code, the next three represent the bank code, and the last three represent the bank’s branch code.
Is the MICR code unique?
Yes, every bank has its own unique MICR code.
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