Everything to know about use of MICR codes

Cheques are used to transfer of funds and other uses. In the early days it was easy to forge a cheque to get a desired amount. But due to the advancement in technology this has been negated by using techniques that can read the validity of the cheque. This uses are globally accepted to avoid any mishap that can take place. One such thing is the MICR codes that have made it easier for a cheque to pass and also prevents forgery of it.

What is the MICR Code?

The full form of the IFSC code is the Indian Financial System Code. This code is alphanumeric in nature and helps in electronic fund transfer in the country of India.

  • The MICR stands for the Magnetic ink character recognition code that is found printed on the cheques of every bank throughout the world. It was mainly introduced to make it easy for employees to clear a cheque
  • The MICR Code has the 9 digits in it that make it up and they are divided into 3 digit portions. The first 3 digits imply the city code for the position of the branch, the next 3 digit tells the bank that the cheque is from and the last 3 digit states the branch from which the cheque belongs to.
  • The MICR technology was started in India around 1980’s and it has helped ever since. It has made clearing of cheques into a breeze whereas it was a toiling process in the early days.
  • The ink that is used in printing the MICR codes use an ink that contain iron oxide which can be magnetized. This is important as through this the MICR reading machine is able to trace it in 99% cases. The machines are also able to read the codes even if a stamp or some mark is present on the MICR code. So, these days cheque dropping machines have been equipped in the branches to make the process easier.
  • The ink that is used in printing the MICR codes use an ink that contain iron oxide which can be magnetized. This is important as through this the MICR reading machine is able to trace it in 99% cases. The machines are also able to read the codes even if a stamp or some mark is present on the MICR code. So, these days cheque dropping machines have been equipped in the branches to make the process easier.

Where to find the MICR codes?

Often people misplace their cheques or are unable to know the MICR codes that one may need. The best way to find an MICR code is to look up in the check book. It is written in the bottom white portion of the check which increases its visibility and ease in detection. The MICR codes can also be read through the databases submitted to the banks to RBI. But it is often a task to browse through the pages to get the MICR code that one needs. There is an easy way out though and that is by using Bankcodez.com. They are specialised in generating several types of codes that are needed when using banking. MICR codes are quite easy to generate in their site. Certain information like the Bank Name, Bank Branch, City and State of the Bank Branch etc. has to be stated. This will eventually lead to the MICR code and information on the Bank.

List of Banks in India