What is MICR Code? Complete Guide to Cheque Processing
Understanding MICR codes, magnetic ink technology, and how cheques are processed electronically in India
MICR Code Overview
MICR (Magnetic Ink Character Recognition) is a 9-digit code printed on cheques using magnetic ink that enables fast and accurate electronic clearing of cheques in India.
MICR Code Structure Explained
Example: State Bank of India, New Delhi Branch
City Code (3 digits)
First 3 digits represent the city code allocated by RBI
Examples:
• 110 = Delhi
• 400 = Mumbai
• 560 = Bangalore
• 600 = Chennai
Bank Code (3 digits)
Next 3 digits identify the bank
Examples:
• 002 = State Bank of India
• 024 = HDFC Bank
• 026 = ICICI Bank
• 009 = Punjab National Bank
Branch Code (3 digits)
Last 3 digits identify the specific branch within that bank and city
Each branch has a unique combination of these 9 digits
Note: MICR codes are unique to each bank branch, just like IFSC codes, but they serve different purposes.
How MICR Technology Works
Magnetic Ink Printing
MICR characters are printed at the bottom of cheques using special ink containing iron oxide particles. This magnetic ink allows machines to read the numbers even if the cheque is dirty, torn, or overwritten.
Machine Reading
High-speed MICR reader machines use magnetic heads to read the magnetized characters. They can process thousands of cheques per hour with 99.9% accuracy, much faster than manual processing.
Cheque Processing Steps:
Cheque is deposited at your bank branch
MICR reader scans the code at bottom of cheque
System identifies bank and branch from MICR code
Cheque clearing house processes the transaction
Funds are credited/debited electronically
MICR Code vs IFSC Code
| Feature | MICR Code | IFSC Code |
|---|---|---|
| Full Form | Magnetic Ink Character Recognition | Indian Financial System Code |
| Format | 9 digits only | 11 alphanumeric |
| Primary Use | Cheque processing | Online fund transfers |
| Technology | Magnetic ink recognition | Electronic identification |
| Example | 110002001 | SBIN0001234 |
| Found On | Cheque leaf (bottom) | Cheque, passbook, statement |
| Introduction | 1980s in India | 2008 by RBI |
Key Difference: MICR is for physical cheque processing while IFSC is for electronic online transfers. Both uniquely identify bank branches but serve different payment systems.
Where to Find MICR Code?
On Cheque Leaf
MICR code is printed at the bottom of every cheque leaf in magnetic ink. It's the 9-digit number usually on the right side.
In Passbook
Check the first page of your bank passbook. MICR code is usually listed along with IFSC code and branch details.
Online Search
Search on our website by bank name, branch, or city to find MICR codes for any branch in India.
Visual Guide - Cheque Layout:
Benefits of MICR Technology
High-Speed Processing
MICR readers can process 2,400 cheques per minute, enabling banks to handle millions of cheques daily with minimal human intervention.
High Accuracy
Error rate is less than 0.1%. Magnetic reading is far more accurate than optical character recognition (OCR) for financial documents.
Security
Difficult to forge or alter MICR codes. Special magnetic ink and printing make counterfeiting extremely challenging.
Durability
Can be read even if cheque is damaged, stamped over, or soiled. Works in conditions where optical scanning would fail.
Frequently Asked Questions
Do all bank branches have MICR codes?
Not all branches have MICR codes. Only branches that participate in cheque clearing through cheque truncation system (CTS) have MICR codes. However, most major branches do have them.
Can I deposit a cheque without MICR code?
Yes, but it may take longer to clear. Non-MICR cheques require manual processing and can take additional 1-2 days to clear compared to MICR-enabled cheques.
Is MICR code needed for online transfers?
No, MICR code is not required for online transfers (NEFT/RTGS/IMPS). For online transfers, you only need the IFSC code. MICR is specifically for cheque processing.
What is CTS in relation to MICR?
CTS (Cheque Truncation System) is a modern cheque clearing system that uses MICR codes along with digital images of cheques. It has made cheque clearing faster and more efficient across India.
Need IFSC Code for Online Transfers?
For NEFT, RTGS, and IMPS transfers, you'll need IFSC codes