What is MICR Code in Passbook
7 June, 2024
Synopsis
MICR stands for Magnetic Ink Character Recognition – an important code in bank transactions.
MICR Code is a unique 9-digit code that helps identify banks and its branches.
This code is typically imprinted on cheque leaves and bank passbooks.
If you hold a cheque leaf closely, you will notice that it comprises a series of numbers. You can typically find your account number, IFSC Code, and cheque number, which you must mention on the deposit slip upon depositing a cheque in the bank. But while these numbers are incredibly important to ensure your account is duly credited, the bank is interested in another sequence of numbers while clearing cheques. This code is called the MICR Code.
Let’s learn what it is and how to find MICR code in passbook and cheques.
What is MICR Code in Passbook and Bank Cheques?
Short for Magnetic Ink Character Recognition (MICR) Code is a 9-digit code that helps banks recognise or identify other banks and/or their branches, typically those that are participants in the Electronic Clearance System (ECS) Credit scheme. The RBI has introduced the MICR code with the goal of streamlining the processing and clearance of cheque payments.
Upon introduction, the RBI assigned each bank with a distinctive MICR Code, comprising a unique character recognition technology. This magnetic ink technology used in cheques helps banks ascertain the authenticity of the cheques presented for clearance. Essentially, the MICR code is an encrypted code that helps banks differentiate between genuine and counterfeit cheques.
How to Find MICR Code in Passbook and Bank Cheques?
The MICR code is usually printed on the bottom mast of each cheque leaf, usually next to the 6-digit cheque number. Besides the individual cheque leaves, you can find the MICR code on the first page of your bank account’s passbook. This page also comprises other vital details linked to your bank account such as your account number, IFSC code, and customer ID.
Additionally, you can find out your MICR Code by calling your bank’s customer care helpline and providing your branch’s name and by conducting a quick search on the internet.
Breaking Down the MICR Code
Having explained what is MICR number in bank passbook and cheques, let us now break down the sequences of numbers in the code using an example.
For instance, HDFC Bank has a branch in the Mumbai Central neighbourhood in Mumbai City. The MICR code of this bank branch is 400240071. You can break down this 9-digit code into 3 sections, each comprising 3 digits as under:
The first three digits ‘400’ indicate the PIN code of the city from where a cheque is issued.
The next three digits ‘240’ indicate the bank code, as assigned by the RBI.
The last three digits ‘071’ represent the specific code of the bank’ branch.
When Is MICR Code Required?
Generally, you need to provide the MICR code upon filling out documents for financial investments/transactions. For example, if you open an investment portfolio or invest in mutual funds, you may need to provide a cancelled cheque or enter your MICR code in the application form. The MICR code serves the function of a barcode for the bank to conduct ECS transactions to initiate the investment payments.
Manage Your Bank Transactions Seamlessly – Open an HDFC Bank Savings Account
If you need to conduct banking transactions frequently, you must familiarise yourself with the various numbers and codes on your cheques and passbooks. As an HDFC Bank account holder, you can find the MICR, IFSC, Account Number, and other codes on all your bank documents. You can also call our customer care helpline if you need help locating these numbers. Open your HDFC Bank account today. Click here to get started.
*Disclaimer: Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.
