Full Form of MICR

Full Form of MICR – Magnetic Ink Character Recognition

The full form of MICR is Magnetic Ink Character Recognition. It is a system that is used for the recognition of characters with the help of a special ink as well as characters or in other words. It can be understood as a technology that is used to verify the originality and authenticity of physical documents (especially cheque) and is mostly used by banking institutions.

How MICR Technique Works?

MICR helps in encoding the numbers mentioned in magnetic ink displayed on the base of a cheque. MICR technique works by passing a physical document such as a cheque containing magnetic ink that needs to be read with a machine that can magnetize the ink on that document and then translate its magnetic information into characters. A laser printer is used for printing the magnetic ink, and this is not a regular printer. The laser printer used for MICR accepts Magnetic Ink and Character Recognition toner.

Full Form of MICR

How is a MICR Code Created?


A Magnetic Ink and Character Recognition Code is a 9 digit number. The first three digits of the MICR code are used to represent the City code. The next 3 digits represent the bank code, and the last three digits signify the code of a particular branch of a bank.  Magnetic Ink and Character Recognition code, therefore, is created by taking the city code, bank code, and the branch code. The bank code differs from bank to bank, and the branch code differs from branch to branch. The branch code of a bank is not the same for all. If the code of a particular city s 333, the code of that bank is 666, and its branch code is 999, then the MICR code for the same would be 333666999.


One of the most important features of Magnetic Ink and Character Recognition is that it enhances security and minimizes the losses caused by a few criminal activities such as phishing, social engineering, hacking, etc. It is a character-recognition technology that banks mainly used by banks for simplifying and ease out the processes and clearance of checks and other physical documents. Magnetic Ink and Character Recognition uses special magnetic ink and characters. Magnetic Ink and Character Recognition is completely secure, reliable, quick, and saves manual effort as well.

Why use MICR?

Magnetic Ink and Character Recognition is mandatory to be used to file various sorts of financial transaction forms like SIP form, investment form, or even for transferring funds. MICR must also be used to ensure the authenticity and originality of physical documents like cheques. MICR must also be used to eliminate the possibilities of human errors and initiate quicker transactions that are impossible to achieve in manual processing. MICR provides a higher security level, which eliminates the slightest probability of the documents getting forged. Banking institutions use MICR to verify the validity and enhance the security of authorized cheques.

Difference Between MICR and IFSC Code

Full Form of MICR diff

MICR stands for Magnetic Ink and Character Recognition, whereas IFSC code stands for Indian Financial System Code. MICR is a nine-digit code that helps in the unique identification of the participating bank and branch in an ECS (Electronic Clearing System), whereas IFSC is used to identify bank branches that operates within the NEFT (National Electronic Funds Transfer) network by Central bank. The first 3 digits of MICR code represent the city code, and these are in alignment with the postal code. The next 3 digits of the MICR code signifies the bank code and the last 3 digits signify the branch code. The first four digits of the IFSC code highlight the bank while the next six characters represent the branch’s details. The last character is represented as zero.

How MICR code makes check processing faster?

MICR eliminates the risk of fraud and errors. MICR even helps in processing cheques faster since it is done digitally and not manually. The MICR code is printed on the cheque with a very unique and unusual magnetic ink. This magnetic ink is made with iron oxide, and it has a magnetic material that makes it totally machine-readable and 100 percent error-proof.

In MICR, the check sorting machine or a reading machine read through the inserted check and helps identify the branch name to which the check actually belongs to and then activates the automatic clearing process. This makes the visibility of the MICR code totally clear for the check reading machine or sorting machine. If the Magnetic Ink and Character Recognition code are not visible for some reason, the check reading machine or sorting machine can easily trace the same.

All the bank branches are enabled with MICR code, which means the processing of checks will be faster in all of them.


MICR code is a technology used for character-recognition by industries like banking, aviation, etc, for simplifying the processing of checks and such other documents. The MICR encoding (also termed as the MICR line) is placed at the bottom of the check and other documents, and it typically comprises a bank code, document-type indicator, bank account number, cheque amount, cheque number, and a control indicator. Magnetic Ink and Character Recognition offers a quick and reliable method for scanning and processing information present in physical documents (especially cheques). It is mostly taken into use by banks. MICR is used for capturing and describing the functionality of MICR. Magnetic Ink and Character Recognition also reduces physical paperwork with respect to clearing processes. The MICR code is provided at the base of a check.

MICR should not be confused with IFSC code. Both of these codes are way different from each other.

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This has been a guide to the Full Form of MICR, i.e. (Magnetic Ink Character Recognition) and its definition. Here we discuss how it does work, how MICR code is created, its features, and its differences from IFSC Code. You may refer to the following articles to learn more about finance –

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