What is micr code in cheque book

An MICR (Magnetic Ink Character Recognition) code is a 9-digit unique identifier printed at the bottom of a cheque leaf. It is used by the banking industry to streamline the processing and clearance of cheques. The code is divided into three parts:

• City Code: The first three digits represent the city.
• Bank Code: The next three digits identify the specific bank.
• Branch Code: The final three digits denote the specific bank branch.

This technology uses special magnetic ink, allowing high-speed machines to read and process cheques accurately, reducing errors and fraud.