MICR Full Form

What Is the Full Form of MICR?

The full form of MICR is Magnetic Ink Character Recognition. MICR code (Magnetic Ink Character Recognition Code) is a pattern recognition system used mostly by the bank industry to identify the document’s originality and to enable the processing and approval of cheques and other papers. It is a technology that is used with the help of specific characters and ink.

Characteristics of MICR code

A MICR code is a nine-digit code that recognises the bank and branch involved in an ECS (Electronic Clearing System) uniquely. The MICR code is written next to the cheque number at the base of a cheque leaf. It can also be found printed on the very first page of a bank savings account passbook.

MICR code composed of three parts

  • City code – The very first three digits represent the city. They are matched with the PIN code which we use in India for postal addresses.
  • Bank code – The next three digits reflect a bank.
  • Branch code – The last three figures indicate the branch.

Working of MICR method

MICR code is displayed with two types of formats on the paper. One is CMC-7, and the other is E-13B. Magnet ink is the ink used in the printing process. The MICR code is transferred from the MICR reader, which enables proper reading of the characters that have been blurred by other marks, such as signatures and stamps.

One should notice the MICR code when claiming various types of financial transactions, such as investment types or SIP forms, or when sending money.

Features of MICR code

  • Even if there is any stamp or sign over it, it is easily recognisable. So it’s beneficial. It generates a very secure network as it is hard to track the same ink, which makes forging the document very complicated.
  • In this case, the error rate is low.
  • MICR fonts that do not meet such criteria are either rejected or not approved.

Difference between the IFSC code and MICR code.

The main difference between the two is the IFSC Code is used to remit money via NEFT and RTGS. MICR code, on the other hand, is used only on cheque leaves.


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