What is a MICR Code and How to Read It?

MICR stands for Magnetic Ink Character Recognition. It is a 9-digit numeric code that is printed at the bottom of a cheque leaf using special magnetic ink. Its primary purpose is to make the processing and clearance of cheques faster and error-free.

Anatomy of a 9-Digit MICR Code

The 9 digits are not random; they are divided into three distinct parts, each containing 3 digits:

• First 3 Digits (City Code): Represents the city where the bank branch is located. It aligns with the PIN code used for postal addresses. For example, Mumbai is 400.
• Next 3 Digits (Bank Code): Represents the specific bank. Every bank in India has a unique 3-digit code assigned by the RBI. For example, SBI is 002.
• Last 3 Digits (Branch Code): Represents the specific branch of that bank in that city.

When a cheque is deposited, reading machines quickly scan this magnetic ink code, instantly identifying the city, bank, and branch to route the cheque for automated clearing.