All the information on your banking passbook, your cheques, and the bank’s website is vital. Such information helps make regular purchases and payments. Since IFSC Code is required for online fund transfers using channels like NEFT, RTGS, etc., cheques must be processed using the MICR code.
If you have difficulty locating the MICR code on a cheque, this article is for you.
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What exactly is a MICR Code?
Magnetic Ink Character Recognition (MICR) is a 9-digit identifier that is used to identify a specific bank branch inside the Electronic Clearing System (ECS). This number is often located on the bank’s cheque leaf and the passbook provided to the account holder. The primary function of the MICR code is to validate cheques. Having the code in place also helps to reduce the possibility of mistakes.
Why does the MICR code exist?
Cheques took a long time to process before MICR was used. Back in the 1980s, the RBI established many trustworthy online business methods. Among these fast and secure methods is the use of MICR codes. Numerous nations throughout the globe recognise this MICR code.
Each of the nine digits in a MICR Code denotes a different city, bank, and branch code. The first three numbers correspond to the zip code of the city where the branch is based, followed by a three-digit bank code. Additionally, the final three digits provide the unique code for the specific banking institution where the bank account is held.
Where is the MICR code located on the cheque?
In most cases, the MICR code will be printed at the bottom of the cheque. Iron oxide is the component that makes up the ink utilised to print the code. Currently, two distinct MICR font styles are widely used, including the CMC7 and E13B. The code is often written in the standard E13B font, which uses characters with unusual shapes. Both numeric and symbolic information is included. This font is the de facto standard for printing MICR codes anywhere on the globe. A MICR reader will decipher the MICR characters.
When a cheque is run through a MICR scanner, the magnetic ink characters on the cheque generate a one-of-a-kind waveform for each individual character, which the peruser can decipher and interpret.
FAQs
How can I get a MICR code?
The MICR code for a given cheque is printed alongside the cheque number at the bottom of the cheque leaf.
Do all locations use the same MICR code?
MICR codes are assigned to each branch of a bank, similar to how an IFSC number is assigned to each bank.
Does the bank statement carry the MICR code?
The Reserve Bank of India has mandated that all banks in India must comply with the new regulation that requires the MICR and IFSC codes to be printed on client passbooks and account statements.
Is every customer assigned the same MICR code?
Each bank branch will be assigned its own MICR code. This means that if you use the same bank branch as another customer, you will share the same MICR code with them.
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