What Is MICR Code | Definition, Search MICR Code All Bank Branches

MICR Code Meaning | Search MICR Code | MICR Code Features | Magnetic Ink Character Recognition Full Form

Magnetic Ink Character Recognition is the abbreviation for MICR Code. It is printed at the bottom white line of all checks, which is referred to as the MICR Band. This code can be used for both domestic and international transactions. This is used to increase the transaction’s security. Checks are processed more quickly with MICR. Every bank has its MICR codes. Read below to check the detailed information related to MICR Code like Highlights, Objectives, Format, Search the MICR , and much more. 

MICR Code Meaning

MICR is a long-established technology for ensuring the safety and security of negotiable instruments and facilitating check processing. The code carries information about the cheque, such as the serial number and the nine-digit number. The city is represented by the first three digits, the bank by the next three, and the branch by the last three digits. The RBI created the code to make NEFT (National Electronic Fund Transfer) more efficient. Because MICR codes are written with a specific magnetic ink, fraud cases can be easily recognized with a magnetic scanner. Unlike the IFSC, the MICR is universally recognized for money transfers from one country to another. Because MICR codes are printed with magnetic ink and distinct fonts, they can’t be replicated.

MMID Full Form

Objectives of MICR Code

Some of the main objectives of the MICR are as follows:

• The banking industry uses MICR, or Magnetic Ink Character Recognition, to speed up the processing and clearance of checks and other documents.
• When it comes to transferring cash via NEFT or IMPS, MICR is on par with IFSC.
• The code’s main purpose is to verify the authenticity and legality of paper-based documents in the financial system, and it’s mostly utilized on checks.
• The RBI assigns a unique MICR to each bank branch, which aids in identifying the branch and expediting the clearing process.
• Banking officials who are MICR readers can use the technology to scan checks and read the information immediately through the system.

MICR Code Format

The MICR is written in a specific format. It is written at the bottom of the check and contains information such as the bank code, account number, check number, and amount. Institutions are assigned a MICR number to indicate which branches and banks engage in the Electronic Clearing System (ECS). The Magnetic Ink Character Recognition code is a nine-digit code and the digits in the group of three represent the following data:

• The first 3 digits of a MICR are used to determine the city code,
• The middle three digits are used to identify the bank code
• The last three digits are used to identify the branch code

UPI, IMPS, NEFT, RTGS Limit

Example of MICR Code

110229003 is an example of a MICR where,

MICR Code
1	1	0	2	2	9	0	0	3
City Code	Bank Code	Branch Code

In the above given MICR Example 110229003,

• 110 is a City Code
• 229 is a Bank Code
• 003 is a Branch Code IFSC Code

Best options to Check for a MICR Code

You can look for a bank’s MICR in a variety of ways:

• The Magnetic Ink Character Recognition can be found on the bank’s issued cheque
• On the RBI’s website, you can look up the MICR
• By going to the relevant bank’s website

Steps to Search MICR Code

Users can look for the MICR of a specific bank branch both online and offline. The many methods for obtaining the MICR are as follows:

Demand Draft Meaning

Online Methods

Reserve Bank of India

Users can also seek up the MICR codes on the RBI’s official website (Reserve Bank of India).  Users need to follow the below-given steps to search the MICR :

• First of all, go to the official website of the Reserve Bank of India.
• The homepage of the website will open on the screen
• Click on the MICR option
• A new page will open on the screen
• Now, select the Bank Name and the Bank Branch
• After that click on the Get Bank Details button to check the MICR.

Offline Method

Cheque Book

The MICR is found next to the cheque number on the bottom of a cheque leaf. MICR is written with a unique magnetic ink

Passbook

The MICR is also found on the first page of a savings account passbook

Working of MICR line

As the MICR codes are printed using magnetic ink, the chances of replication are reduced. The MICR line allows the computer to read, store, and decode numbers and data such as cheque numbers, account numbers, and routing numbers. Apart from lowering the likelihood of duplication, magnetic ink allows a computer to read characters that are masked by bank stamps, cancellation marks, signatures, or other marks or inks.

FAQ’s