MICR Code in Cheque

MICR code in a cheque which helps bank and customers to do numerous and fast banking transactions. This code is unique to every bank branch and hence it is used to identify any bank branch uniquely.

you might have used a cheque for a money transaction but do you know the things like what are other details present on the cheque, How other banks confirm that which bank branch issued the cheque etc.

Although we are moving fast towards digital transactions, traditional methods are also used like cheques for transactions. It is used by an individual, companies, and government to do financial transactions. The cheque is quite safe and can be tracked very easily.

We will discuss all the above questions in detail, what is MICR & where to find the MICR code in Cheque. Along with this, we will cover also about IFSC Code and its characteristics. Let’s start…

What is MICR Code

MICR Code means “Magnetic Ink Character Recognition”. This is 9 digit code which helps to identify the location of the bank branch. This code can be found in cheque leaf issued by the bank.

MICR Code is a highly advanced Character Recognition technology(CRT) used by the banks to verify cheques for clearance. you can find this MICR at the bottom of the cheque.

Also Read Cheque Clearing Process

Know Your MICR Code

MICR Code in Cheque

MICR Code Format

MICR code consists of 9 digits. It comprises of 3 parts. Let us understand this through an example.

Since MICR is of 9 digits we will take 123456789 as 9 digits. Now check below the details.

The First 3 digits represent the city code (123)
The next 3 digits(middle ones) represent the bank code (456)
The last 3 digits denote the branch code(789).

For example, if you have an account with State Bank of India (SBI) Ulsoor Bangalore, then its nine-digit MICR code will be 560002050 wherein:

560, the first three digits representing the city Pin code for Bangalore

002, the next three digits representing the bank code for SBI,

And 050, the last three digits representing the bank branch code for Ulsoor Bangalore.

Read more about cheque and its types

How MICR Code Works

As we know MICR stands for “Magnetic Ink Character Recognition”.It is the name of the technology through which code is printed on cheque hence the code is also called MICR code.

So how does this technology helps bank to process cheque faster? let us understand this

On the cheque, the MICR code is printed by a special kind of tonner i.e ink usually iron oxide-containing magnetic material. the code is printed in a special font as well.

The MICR code on the cheque is so clear and correct that the machine can read it even if it is not visible due to other marks or any stamp.

The ink which is magnetic material is readable in nature similar to the debit or credit card we use. we can find magnetic strips on the backside of our Debit/credit card which helps ATM machines/Pos machines to read out data.

When the cheque is inserted into the reading machine or cheque sorting machine, it can read the MICR code hence the machine can find out easily which branch the cheque belongs to.

This automation process helps banks to speed up their work with very little possibility of any error. hence making both the customer and bankers happy.

Importance of MICR Codes

MICR codes help a lot to both banks and customers. let us discuss its importance. below mentioned are some of the significance of MICR codes.

  • It helps in processing the payment made through cheque in a faster and smooth way.
  • Use of MICR Code has helped to reduce the time taken to clear cheque payments.
  • This has helped the bank employees to get rid of the burden of manually entering the details of the check for the purpose of clearing them.
  • Since this process is automated there is very little chance of getting any error.


1-How MICR code is formed?

MICR consists of 9 digit number. The first three digits represent the city code, the next three(middle ones) represent the bank code and the last three digits indicate the branch code.

2-Does MICR code change?

MICR code does not change as for all the customers of any particular branch its same.

3-Is MICR code same for all branch?

No, It is not same for all branch. its unique in nature and its different for every branch.

4-What is an MICR code?

MICR code stands for “Magnetic Ink character Recognition” printed on cheque using MICR technology which helps banks to process cheque faster without any error.

5-Where I can find MICR code on cheque book?

You can find it on the bottom each cheque leaf issued to you by the bank.

6-Who manages the clearing house for Cheque truncation system?

CTS is an image-based clearing system in India launched by the Reserve Bank of India(RBI) in order to process the cheque at a faster rate.

7-What is MICR Toner?

It is a special toner used to provide the magnetic charge to the print which in turn helps cheque clearing machine to read it without any issues.

8-What does C mean in MICR?

C means Character in MICR(magnetic ink character recognition).

9-If a bank branch is changed will MICR Code also change?

If a Bank account is transferred from one branch to another MICR code will change. However, if the location of the bank branch is changed MICR code will remain the same.

10-Is MICR code required to fund transfer?

First of all MICR code, we can not create ourselves. It’s by default present in the cheque issued by the bank.so if you are transferring money through cheque MICR code will be there by default.

NOTE: Check the list of MICR code of Bank branches from the Reserve bank of India

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