What is MICR Code?
MICR stands for Magnetic Ink Character Recognition. It is a 9-digit code printed on cheques using magnetic ink that enables faster and more secure cheque processing.
MICR Code Structure
110002001
110
City Code
002
Bank Code
001
Branch Code
Why MICR Code is Used
- Faster Processing: Automated cheque clearing using magnetic readers
- Error Reduction: Minimizes manual data entry errors
- Security: Magnetic ink is difficult to tamper with
- Verification: Helps verify cheque authenticity
MICR vs IFSC
| Feature | MICR Code | IFSC Code |
|---|---|---|
| Format | 9 digits | 11 characters |
| Used For | Cheque processing | Online transfers |
| Printed With | Magnetic ink | Regular ink |
Note: Not all branches have MICR codes. Only branches that participate in cheque clearing systems have MICR codes assigned.