The full form of the MICR Code is Magnetic Ink Character Recognition. This is a nine-digit unique code.
MICR code is a 9-digit code that can identify a bank branch. This is a print code with magnetic ink. MICR is used in electronic Cheque Clearance. You must have seen that there are magnetic ink code bars at the bottom of every check leaf, this is the MICR code and only the bank can decode it.
Where is the Need
This code is required while filing any type of financial instrument such as an investment portfolio, mutual fund, and SIP application. MICR Code works like a barcode for any electronic clearing system credit transaction of banks. This is done to Cheque paper-based documents in the banking system.
What is MICR Code?
The full form of the MICR Code is Magnetic Ink Character Recognition. This is a nine-digit unique code. RBI gives a unique MICR code to every bank branch. It is used in the Cheque -clearing process.
MICR code can be divided into three parts-
1. The first three digits of the MICR Code are determined by the pin code of the city.
2. The middle three digits of the MICR code are the bank codes.
3. The last three digits of the MICR Code contain the branch code.
How is MICR Code different from IFSC Code?
IFSC Code is used for any kind of online or electronic money transfer within India. Whereas, the MICR code is used to transfer funds globally. IFSC Code contains Bank Code and Branch Code, whereas, MICR Code contains Pin Code, Bank Code, and Branch Code.
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When did the MICR code start
This code was introduced in India in 1980. Initially, it is used in Cheque Clearance. Then gradually it was converted into unique code and started being used for other purposes.
How is the MICR code generated?
To clear any cheque, the check is inserted into a scanning machine, then the MICR code works as a one-time code here. This is a total of 9 digits numbers. Anyone can read its digits.
How to find MICR code online
- Go to any search engine and write the name of the bank or branch by typing MICR code search.
- After this, select the bank, and choose the name of the state and district.
- After this, you will get the MICR code.
