What is a MICR Code?
MICR (Magnetic Ink Character Recognition) is a 9-digit code that uniquely identifies a bank branch for cheque processing. It's printed using special magnetic ink that can be read by machines for automated cheque clearing.
The Structure of a MICR Code
A MICR code has a specific structure:
- First 3 digits: Represent the city code (e.g., 400 for Mumbai).
- Next 3 digits: Represent the bank code.
- Last 3 digits: Represent the specific branch code.
MICR vs IFSC: Key Differences
While both codes identify bank branches, they serve different purposes:
- MICR: 9 digits, used for cheque processing and clearing.
- IFSC: 11 characters, used for online fund transfers (NEFT, RTGS, IMPS).