MICR Code Explained: What It Is & How It Differs from IFSC
Understand MICR (Magnetic Ink Character Recognition) codes used in cheque processing, their 9-digit format, how they differ from IFSC codes, and why they're crucial for India's banking system.
MICR vs IFSC: Quick Comparison
| Feature | MICR Code | IFSC Code |
|---|---|---|
| Format | 9 digits (6 digits + 3 digits) | 11 characters (4 + 7) |
| Purpose | Cheque processing | Electronic fund transfers |
| Technology | Magnetic ink scanning | Digital system routing |
| Location | Bottom of cheques | Cheques, passbooks, online |
What is MICR Code?
MICR (Magnetic Ink Character Recognition) is a 9-digit code printed on cheques using magnetic ink. It enables fast and accurate cheque processing by special machines that can read the magnetic characters automatically.
MICR Code Structure:
Example MICR Codes:
How MICR Technology Works
MICR technology uses special magnetic ink (usually iron oxide-based) and specialized scanners that can read characters even if they're overprinted or written on. This makes cheque processing faster and more accurate than manual reading.
Cheque Processing Steps:
- 1.Cheque Submission: You deposit a cheque with MICR code
- 2.Magnetic Scanning: MICR reader machine scans the magnetic characters
- 3.Code Recognition: System decodes the 9-digit MICR code
- 4.Branch Identification: System identifies the specific bank branch
- 5.Processing: Cheque is routed to the correct branch for clearing
Where to Find MICR Code
📍 On Cheque Books
Look at the bottom strip of any cheque - you'll see the 9-digit MICR code printed in magnetic ink, usually at the center of the bottom edge.
📄 Bank Passbook
Check the account details page of your passbook. Most banks list MICR code alongside IFSC code.
💻 Online Banking
Many banks show MICR code in account details or profile section of their internet banking portal.
🔍 Bank Website
Most banks have branch locators that display complete details including MICR codes.
Key Differences from IFSC Code
MICR Code
- • 9 digits only
- • Used for cheque processing
- • Magnetic ink technology
- • Physical location-based
- • Essential for cheque clearing
IFSC Code
- • 11 alphanumeric characters
- • Used for electronic transfers
- • Digital system-based
- • Network-based routing
- • Essential for NEFT/RTGS/IMPS
Common Uses of MICR Code
Important Notes
⚠️ Don't Use MICR for Electronic Transfers
MICR codes cannot be used for NEFT, RTGS, IMPS, or UPI transfers. Always use IFSC codes for electronic transactions.
🔍 Verify with Bank
Always verify MICR codes with your bank if you're unsure. Different branches in the same city may have different MICR codes.
📄 Cheque Books
New cheque books automatically have the correct MICR code. The code doesn't change unless the branch moves or merges.