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What is MICR Code- Magnetic Ink Character Recognition
MICR stands for Magnetic Ink Character Recognition in India Banking System. This code is found on all cheques and can be located at the bottom of every check. MICR code is used to enhance and improve security with regard to money transactions between the banks. It is 9 digits combination. Out of the 9 digits of MICR Code, the first three digits representing the city, the next three represents the bank, while the last three represents the bank branch. This code is written with magnetic ink and can be checkes or identfied by magnetic scanners.
For example an MICR code appears as 783013202. 783 represents the city Goalpara City. The next three digits 013 is the bank code of Bank Of India Bank, while the last three digits, 202 is the branch code of the Bank Of India Goalpara Branch in Goalpara City Branch .