MICR Code- , -

Overview

Ever you check the 9 numbers element printed at the bottom of the cheque? Those number if you’ve keenly observed is the MICR Code. The MICR code is the Magnetic Ink Character Code which is printed on cheque or bank passbook for automated processing of cheques that helps to make transactions faster. They are written in a very encoded format to make it a computerised look of the code.

The MICR code allows the bank transaction to go smoother, this code also allows to trace path with the transaction at ease. Unlike the IFSC Code is used for electronic transfers, this code accelerates the clearance of cheque process. This blog will delve deep into the MICR Code, its uses, structure and the detailed information of the location of .

What is MICR Code?

The MICR Code or the Magnetic Ink Character Recognition Code is the 9-digit tool that is located at the bottom of the leaf cheque. This code was introduced in 1980s by the Reserve Bank of India to ensure safety and effectiveness for payments. The MICR code provides accuracy, efficiency, errors free and standard payments. This code is prominently used to leverage the paper-based financial transactions.

Purpose of MICR Code

The main purpose of using MICR code is to smooth the processing of cheque transactions. This code secures the deposition of cheque transactions as the digital financial landscape evolves.

What is MICR Code Used for?

There are various applications that used the MICR code:

1. Cheque

   If you’ve a cheque you can see that at the bottom of it, you can MICR Code is printed.

2. Bank Passbook

   On receiving the bank passbook, you may have also notice that it is also printed on the first page of the bank passbook.

3. Bank’s website or Customer Service

   Most banks provide the bank’s website for customer service.

Structure of MICR Code

Here’s the structure of MICR Code:

MICR Code

There are various applications that used the MICR code:

1. Represents name of the City

   The first 4 digit of MICR code represented with ABC is representation of city. This city signifies that the particular cheque is sent from the respective city.

2. Bank Code

   The next 3rd digit of MICR code represented with EFG represents the bank code. The bank code refers to the code that is assigned and defined in order to identify bank and branch during transaction. This letter or code is structured in abbreviation and has the same sound as the bank name.

3. Branch Code

   The last 3rd digit of MICR code represents with HIJ that represents the Branch Code. The branch code is the specified code that particularly specifies a branch within the bank. This is optional or even important in some banks cases.

Detailed Information about MICR Code

Here’s the Detailed Information about the MICR Code:

*Disclaimer
The above furnished information given in table is provided for informational purpose only. We’ve made the information with every effort to provide accurate and updated data. If you’re making any critical or urgent account information or transactions respectively, you need to contact your bank first for accurate information.

Conclusion

MICR code is the 9- numeric digit code which doesn’t endemic to India like an IFSC Code but also at the international border. This code is used to process the smooth transactions of cheque in a digital financial transaction system. As every branch have its own MICR Code but with the same structure and formatting of MICR Code.

Frequently Asked Questions