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What is MICR code?

Writer: YashJYashJ

After opening an account with a bank, account holders receive a banking welcome kit. A passbook, cheque book, debit card, and other financial credentials are included with the banking welcome package.


The kit is given to the account holder so that they can conveniently make and record transactions. Aside from that, banks provide services to their consumers via mobile apps and online banking.


Every detail matters, whether it's on the bank's mobile application, website, or passbook or cheque book. All of these details are used at one point or another to complete transactions. For example, an IFSC code is used to track a bank's branch and is required to be entered in order to complete transactions conducted via NEFT, RTGS, or IMPS. A debit card, on the other hand, is used to make transactions online, offline, or to withdraw money from ATMs.


What exactly is a MICR code?


Magnetic Ink Character Recognition (MICR) is the abbreviation for Magnetic Ink Character Recognition. It is printed on the bottom of the cheque and allows the check to be identified. MICR is a type of barcode that is used to speed up the processing of checks. It can also be defined as follows:


  • MICR stands for Magnetic Ink Character Recognition Code and is a nine-digit code.

  • It can be found near the bottom of the check.

  • It contains bank information such as the bank code, account number, cheque number, and amount.

  • MICR codes are made up of various characters.

  • Unlike the IFSC code, the MICR code is universally recognized for money transfers from one country to another.

  • Because MICR codes are printed with magnetic ink and distinct fonts, they can't be replicated.

  • India's banks each have their own MICR codes.


What is the MICR code format?


Institutions are assigned a MICR number to indicate which branches and banks participate in the Electronic Clearing System (ECS). It's a nine-digit code, and the digits in the group of three represent the following data:


  • The city code is represented by the first three numbers.

  • The bank code is represented by three digits in the middle order.

  • The last three digits reflect the branch code.


What is the MICR code and where can I find it?


The MICR code can be found in one of the following ways:


  • The MICR code is located at the bottom of the check.

  • It can be accessed on the Reserve Bank of India's official website.


What is the MICR line and how does it work?


Because MICR codes are printed using magnetic ink, the chances of duplication are reduced. The MICR line allows a computer to read, record, and decode numbers and information such as check numbers, account numbers, and routing numbers.


Apart from lowering the likelihood of duplication, magnetic ink allows a computer to read characters that are obscured by bank stamps, cancellation marks, signatures, or other marks or inks.



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