The full implication of MICR stands as Magnetic Ink Character
Recognition Code and it mainly contains
9 digits. This code is in the format like ‘380002007’ and appears right at the
bottom of the cheque leaves. This is present following the cheque number and
each Bank has a Unique MICR code of its own. It in other words could also be
regarded as an identity factor for any Bank Branch.
The Reserve Bank of India had introduced this concept for
safe and effective payments across the country. It is not just the sole safety
step taken up by RBI but nonetheless, it is one of the unique systems that
helps in cheque clearing process as well. Another importance of The MICR Code
is in identifying online Money transfer as well. RBI can easily trace out the
bank branch with the help of this code while clearing process.
Easy
steps to remember the long Bank MICR code
·
Remember the initial 3 characters is used to
display the city and is derived from the first three characters of the PIN in
the address of bank branch.
·
The digit displayed in the 4,5 & 6th
place displays the bank code that is given to the bank by RBI
·
Following 7, 8 and 9th place is the
display of Bank Branch Codes that are allotted to any branch of bank
Use of
Bank MICR Code to speed up the processing of Cheques
Earlier the manual clearing process of cheques had posed many
human errors and much delay in the process too. But ever since this magnetic
code came into existence, it is no more the task of humans to check but a
machine does its job making process fast and flawless.
Under the machine reading method, all the cheques are
inserted into the machine to identify the authenticity of cheque by checking
bank branch whose cheque has been issued and thereby carries the automation
clearing process.
It was in the Payments in India: Vision 2009-12 that RBI had
regulated an order that tells that all bank branches be enabled with an MICR
code to make clearing process fast and perfect. RBI’s another intention is that
to reduce any paper-based clearings by opening up MICR Cheque Processing Centers
so that they may process about 95% of volume and value of cheque processes. But
one can only get a fully proofed MICR code and IFSC code from any reliable branch of nationalized/private banks in
our country.
Visit For More Info:- State Bank Of India Branches IFSC Code
