MICR Code | MICR Code on Cheque

MICR Stand for Magnetic Ink Character Recognition. It is a unique code assigned to each bank. If one have a good knowledge of MICR Code, one can identify the bank and branch name from this code. It is of 9 digits, each 3 digits define the 3 essential components:-

  • City Code - First Three Letter
  • Bank Code - Middle Three Letter
  • Branch Code - Last Three Letter.
For Example:-


In the above Pic, MICR Code shown as 110229003.

110 will Identify the City Code.
229 Will Identify the Bank Code
003 Will Identify the Branch Code

Difference Between IFSC Code and MICR Code:-

IFSC Code is basically used while fund transfer between two banks however MICR Code is used for Cheque Clearing process. Another difference between IFSC and MICR Code is that IFSC Code is of 11 alpha numeric digits however MICR Code is of 9 Numeric digits.


Purpose of MICR Code:-


MICR Code as name sounds is a new technology in the banking process which helps in the process of cheque clearing very fast and makes it very easier and convenient.

As the codes identify the Bank and Branch name, it makes the cheque Clearing process more easier and fast and chances of errors are being less. It is also used for fund transfer purpose like NEFT.

If you claim for the fund refund to the Income Tax Department and mentioned the MICR Code on the refund form, you will get your refund faster as the amount will directly sent to your account.

For some purpose we need to submit the cancel cheque, please make sure to disfigure the MICR Code and Cross the cheque and write "Cancel" on it. This will not let anyone to misuse the cheque.


IFSC Code and MICR Code on Cheque:-


One can identify both IFSC Code and MICR Code on cheque book. You will see IFSC Code at the top of the Cheque, while MICR Code will be populated at the bottom of the Cheque. You can also check IFSC and MICR Code on Bank passbook.

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