While searching for the IFSC Code of your bank account you might have come across MICR Code. Alternatively, you might have seen the MICR Code printed on your cheque leaflets. The MICR Code is printed on Cheques using a special technology called Magnetic Ink Character Recognition. That’s the reason the code is called MICR Code. Actually, the full form of MICR is nothing but Magnetic Ink Character Recognition.
It is a 9-digit code provided to all the banks and branches supporting Electronic Clearing System built by RBI. A MICR Code consists of 3 different parts. The first three digits of the MICR Code represents the City of the bank branch. It is aligned with the PIN Code of the city. The same pin code we use for sending parcels.
The next three digits in the MICR Code represents the specific bank think of it as a Bank code. Lastly, the remaining 3 digits of the MICR Code represents the branch of your bank. Now you will have more clarity about MICR Code. Next time you see a code printed on your cheque you will easily be able to identify it.
Now when you know about MICR Code. You might be thinking what is the use of it. The code is used for the identification of the cheques. It helps in the faster processing of the cheques. If you are looking to find a MICR Code you can find it at the bottom of your cheque. It is printed next to the cheque number. You can also find it on the first page of your Bank Passbook along with other details such as IFSC Code, Account number. That’s all you should know about MICR Code. I hope you are able to understand it.