Is MICR code same for same branch: All you need to know

Thousands of financial institutions make up India’s extensive banking system. Every day, millions of transactions are completed, with amounts varying widely by region and culture. So, recording the trades is crucial. Reserve Bank of India has developed specific codes, such as the MICR code, for quicker transfer and easy clearance.

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In this article, we will investigate whether different MICR codes are assigned to multiple consumers who use the same branch of a bank.

See also: What is MICR code?

MICR code format

The Magnetic Ink Character Recognition (MICR) code has its own distinctive formatting. In addition, it is a nine-digit number that may be used to determine the specific bank branch that is a part of the electronic clearing system, also known as ECS.

City			Bank			Bank Branch
1	2	3	4	5	6	7	8	9

To better understand the MICR code, let’s split it down. The nine-digit MICR code represents the following information:

Initial 3 digits signify the city

The first three digits of the MICR, representing the city, are the same as the first three numbers of your postal code. For example, if the first three digits of New Delhi’s PIN code equal 123, then the first three digits of the MICR code for every bank branch in New Delhi must also equal 123.

all about: micr account number

Middle 3digits represent bank code

As for the following three digits of the MICR code, i.e. numbers 4-6, they represent the bank code. Identifying a certain financial institution by its own three-digit bank code is possible. If the HDFC code is 456, then the 4-6 digit MICR Code for each HDFC branch in India would also be 456.

Next 3 digits indicate branch code

If you look at the following three digits of the MICR code, from 7 to 9, you will see the code for a specific bank branch. There is a unique three-digit code for each bank branch.

Does MICR Code change within the same branch?

Magnetic Ink Character Recognition (MICR) codes are institution-specific, meaning that each bank and branch within a city or town has its own unique set of codes. When consumers use the same bank and branch, their MICR code will not change even if they use other services.

When using the ECS Credit system, you need to know the MICR Code, which is a 9-digit number specific to each bank location. By authorising a single debit from the user institution’s bank account, an ECS Centre allows a user institution to extend credit to a broad group of beneficiaries (such as workers, investors, etc.) with bank accounts at bank branches in different locations under the ECS Centre’s jurisdiction.

Using ECS Credit, the user institution can send dividends, interest, salaries, pensions, and other similar distributions to its employees and beneficiaries.

FAQs

How do banks use MICR?

The MICR system is employed to streamline cheque processing and make it harder for fraudsters to utilise stolen cheque account information.

What relevance does the MICR code have?

MICR is a method used to verify the legitimacy of paper documents like cheques. Its primary use is to speed up cheque processing at financial institutions.

What is a MICR Number, and what does it mean?

The MICR number on a cheque is a strip of characters written with magnetic ink so that a reader-sorter system may read them.

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