What is a MICR Code?
Any bank branch that is part of the Electronic Clearing System. It gets a 9-digit Magnetic Ink Character Recognition (MICR) code. It is different from all branches, with the help of this you can get more information about the bank loan. This code is usually printed on the passbook issued to the account holder. It is also available on checks issued by banks. This is especially important when paying by check.
What is the type of MICR code?
The first three digits of the nine digits are used to indicate the city. The middle three digits are used to identify the bank, and the last three digits are used to identify the bank branch. For example, “700002021” is the MICR code of SBI branch in Kolkata. Here the first three digits (700) are used to describe the city, the next three digits (002) are used to indicate the bank, and the last three digits (021) are used to indicate the bank branch. The machine uses the MICR code to process and issue checks.
What is the meaning of this code?
Banks use a human recognition technology called MICR or Magnetic Ink Character Recognition Code to speed up the processing and acceptance of checks and other documents.
The main purpose of the code is to verify transactions in the bank, especially through the use of checks. This code is assigned by RBI to each bank. Just as the IFC code is required for fund transfers through NEFT and IMPS, so is the MICR code for check payments.
How to find MICR number
The MICR number is printed on your check next to the check number. The color and ink used to display the MICR code. What can be read is a magnetic ink reader. The MCR number is also available on the official website of RBI.