Magnetic ink character recognition code, known in short as MICR code, is a character recognition technology used mainly by the banking industry to streamline the processing and clearance of cheques and other documents.

Where is MICR code used?

MICR code is a code printed on cheques using MICR (Magnetic Ink Character Recognition technology). This enables identification of the cheques and which in turns means faster processing. An MICR code is a 9-digit code that uniquely identifies the bank and branch participating in an Electronic Clearing System (ECS).

Is MICR code required for Neft?

Difference IFSC Code and MICR

So, the difference essentially is that IFSC Code is used when remitting money through NEFT and RTGS. On the other hand MICR code is used only on cheque leaves.