MICR CODE (Magnetic Ink Character Recognition)


You may have heard the name of the MICR Code but do you know what is MICR code and where is it used ?  Important use of two codes in banking work is the first IFSC code and the second MICR code. IFSCcode and MICR code  is used to identify the bank of beneficiary during the transfer of funds from one account to another account by the bank ,  so that money can be transferred to the correct account. Like all banks have different IFSC codes, just MICR code of all bank branches are also different and unique.


In today’s post we will know what MICR  code is and what is the use of it.  If you use the cheque book,  then you may have noticed that some numbers are printed below the cheque but do you know what these numbers are or what does that mean?  MICR is a technology that is used to check the originality of the paper document.  This code is a special type of code which is only validated by electronic medium.

What is MICR code ?

The full form of MICR code is Magnetic Ink Character Recognition.  MICR, as its name suggests is a code based on character recognition technology. Which is used in the bank’s cheque clearance, this code is written in a line below the cheque, Which is called MICR code. Reserve Bank of India uses this code to identify bank branch and clearing the cheque. The security of the cheque increases through this code. MICR reader is used to read the MICR code.

Structure of MICR Code

MICR code is consist of 9 digits, which is the identification number of  bank branch in the electronic clearing system.

         As example :- If any bank’s MICR Code is 411259033

       (i)  411 indicates City name (city pin code)

      (ii)  259 indicates Bank name (Bank code)

      (iii)  033 indicates Branch code


            What is SWIFT Code ?