Whats is MICR code? - How it Works?

MICR CODE

Earlier this month there was some newspaper reports regarding however a purported bank in Bengaluru known pretend demand drafts (DD), and alerted the police. during this case the bar codes within the pretend DDs lacked ink and weren't decipherable on the MICR and this together with different very important clues helped stop the fraud.

So, in an exceedingly manner the MICR codes saved the day for the bank! but, this is often not the sole use of MICR! There area unit more uses. however before that permit U.S.A. see what the MICR is all about! What will it comprise of? most significantly however is it helpful to you? you can search branch address, phone number, IFSC code through MICR code

What is MICR?

Many of you'd have seen the magnetic inks bar codes written on rock bottom of your bank's cheque leaves. These bar codes area unit called MICR code, associate abbreviation for 'Magnetic Ink Character Recognition'.

Actually, the MICR is that the name given to the technology utilized in printing the code.

In the early Nineteen Eighties the bank of Republic of India introduced several new modes for safe and effective payments across the country. One such necessary mode introduced was the distinctive system of MICR primarily based cheque clearing system.

Apart from being a security code to safeguard your group action, the MICR code is additionally an imperative half for on-line cash transfers. each bank branch is given a singular MICR code and this helps the run to spot the bank branch and speed up the clearing method. you can also know ... What is IFSC code

What will it comprise?

The MICR code has 9 digits in it with every 3 digits signifying some necessary data regarding the group action and also the bank. the primary 3 digits within the MICR code represent town code that's town within which the bank branch is found.

In most cases it's in line with the PIN code of the communication addresses in Republic of India.

The next 3 digits represent the bank code whereas the last 3 digits represent the bank branch code.

For example, if you have got associate account with bank of Republic of India (SBI) urban center (Central) then its 9 digit MICR code are going to be 400002009 wherein:

400, the primary 3 digits representing town code for Mumbai;

002, ensuing 3 digits representing the bank code for SBI;

And 009, the last 3 digits representing the bank branch code for Andheri (West).

You can check the MICR codes of various banks and its branches by checking it out on the run web site. To like our page on Facebook for updates

How will MICR facilitate speed up the process of cheques?

Unlike the manual clearing of cheques wherever there's a prospect of the many human errors and ulterior delay in clearing, the MICR code on the cheque written with a singular ink typically iron compound has magnetic material gift in it and so makes it machine-readable and nearly error proof! All Bank Branches IFSC code and MICR code list

Under this methodology the reading machine or a cheque sorting machine reads through a cheque once inserted and identifies the branch the cheque belongs to and activates the automation clearing method.

The MICR code is therefore clear and fine that the machine might scan it albeit the MICR code is not visible thanks to different marks or stamps on that.

According to the bank of Republic of India report (Payments in India: Vision 2009-2012), all bank branches are going to be enabled with MICR codes. For State Bank of India SBI MICR CODE & IFSC CODE

Also, the run intends to scale back paper-based clearing method by introducing MICR- Cheque process Centres that may method over ninety five per cent of volume and price of cheques processed within the country.