Find Branch Details By MICR Code

What is the MICR Code?

MICR stands for Magnetic Ink Character Recognition. It is a unique technology used for processing of checks and other documents in the bank. MICR code is a set of 9 numbers and special characters that are printed on the bottom of a check to uniquely identify a particular bank branch.

If we break down this code, we get details about the city code, bank code, and unique branch code. Let's understand the structure of the MICR code.

Demo cheque example
  1. IFSC Code
  2. Cheque Number
  3. MICR Code

Bank MICR Code Format:

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

The IFSC code follows a specific format, which is 11 characters long. Let's break down the IFSC code format:

  1. First three digits: These represent the city code. They identify the city where the bank branch is located. For example, in the MICR code "123," the "123" may correspond to a specific city.
  2. Middle three digits: These digits represent the bank code. They identify the specific bank where the account is held. For instance, in the MICR code "456," the "456" may correspond to a particular bank.
  3. Last three digits: These digits represent the branch code. They identify the particular branch of the bank where the account is held. In the MICR code "789," the "789" indicates a specific branch.

Here's an example of a MICR code: 123456789

  1. "123" might represent the city code.
  2. "456" might represent the bank code.
  3. "789" might represent the branch code.

Why MICR code is important?

  1. Automated Processing: Cheques can be processed automatically thanks to MICR technology. In order to reduce the need for manual involvement in check processing, high-speed machines can read the information quickly and precisely thanks to the distinctive characters and magnetic ink employed in the code.
  2. Accuracy: Using MICR codes lowers the possibility of mistakes occurring during the processing of checks. The information is appropriately interpreted thanks to the machine-readable format, which lowers the possibility of errors that come with manual data entering.
  3. Efficiency: The efficiency of banking processes is enhanced by automated processing made possible by MICR technology. Quicker check processing enables speedier financial transaction clearing and settlement.
  4. Security: MICR ink is impervious to fraud and tampering. Since the ink is magnetic, it is challenging to replicate or modify a check covertly. This improves the banking system's security and aids in the suppression of fraud.
  5. Compatibility: MICR technology is compatible with a wide range of banks and financial institutions due to its widespread use and standardization. This guarantees the banking system's interoperability, facilitating the smooth processing of checks between institutions.
  6. Identification of the bank branch: The MICR code provides details about the bank and branch where the account is kept. In order to process the check at the appropriate location, this information is necessary.
  7. Check routing: During the clearing process, MICR codes help in check routing. It assists in locating the bank and branch linked to the account, guaranteeing that the check gets to the right place for validation and processing.