What is MICR Code?
You must have heard the name of MICR code, but do you know what a micr code is and where it is used. Two codes are important use in banking related work, first IFSC code and second MICR code. We had mentioned in the previous post what the IFSC code is. If you do not know what is the IFSC code, then you can read our post IFSC
Both the IFSC code and MICR code are used to identify the bank of the beneficiary while transferring money from one account to another so that the money can be transferred to the correct account such that all bank’s IFSC code is different. The micr code of all bank branches is also different and UNIQUE is different.
In today’s post, we will know what is MICR Code and what is its use. If you use a check book nearby, then you must have seen that some marks are printed under the check, but do you know what these points are called or what they mean, if not then read this post. MICR code is a technology that is used to check the originality of a paper document. This code is a special type of code that can be verified only through electronic means.
MICR Full Form – Magnetic Ink Character Reader
What is Bank MICR Code?
The full form of MICR Code (MAGNETIC INK CHARACTER RECOGNITION) is. MICR as its name suggests, it is a code based on character recognition technology. Which is used in bank cheque clearance. This code is written in a line below the check, which is called MICR band. The Reserve Bank of India uses this code to identify bank branches and pass checks. The security of the check is increased through this code. MICR reader is used to read the MICR code.
The MICR code is nine digits, which is the identification number of the bank branch involved in the electronic clearing system. In these nine digits, the first 3 digits indicate the name of the city, the next three digits indicate the name of the bank and the last three digits indicate the branch of the bank.
Suppose the code of a bank is 228455667.
228 – Name of the city
455 – Bank name code
667 – Code of bank branch
In a bank check, the micr code is written in a line at the bottom of the check as you can see in the image above.
MICR Code is written with a special type of ink that can catch the fraud cases and it also increases the security of your money. The micr code also protects you from fraudulent frauds in bank checks. If you give a fake check, it can also be identified on the basis of this number.
How to find MICR code of any bank?
MICR code is written under your bank passbook and check. If you do not have this code in your passbook then you can find it online also.