MICR Code is a unique 9-digit code provided by bank of a particular branch that helps in easy and convenient way of performing in ECS or Electronic Clearing System. This code is same as the IFSC Code, this code consists of 3 digits that defines city code, next 3 digits defines respective or bank code, and the last 3 digits defines the branch code of the bank respectively.
What are the features of MICR Code?
- MICR Code is used for online processing and clearance of financial documents or cheques, etc.
- Major use of the code is to perform the authentication of the legal papers or documents, especially cheques.
- MICR code comes in use with the IFSC Code hand in hand to perform online transactions.
- Banking organization can easily read and know the info related with the MICR Codes from the systems simply by scanning the cheques.
- As IFSC Code is provided by RBI same, the MICR Code is also provided by the RBI.
How to find MICR Code?
- Individual can find the MICR Code respectively like the IFSC codes either directly by searching on Internet or on any official sites on the Code search tools.
- Also, one can find the MICR Codes on the Check, at the bottom. Check the below image to find the MICR Code on cheque leaf.
MICR Code is printed on the cheque leaflets, this code helps in easy clearance and processing of the banking. The difference between the IFSC and the MICR Code is that, IFSC code is used for performing online banking like NEFT or RTGS, where MICR code is used to speed up the cheque clearances. This code has higher accuracy, with fast performance with greater security offers higher benefits both to the consumer and for the banking systems.
What are the advantages of MICR Code?
- It is specific and unique code offered to the individual
- Saves time to know the information related with the cheque.