MICR: Magnetic ink character recognition
MICR code is a nine-digit number printed on banking instruments such as a cheque or a demand draft using a special type of ink made up of magnetic material.
The first three digits denotes the city. The fourth to sixth digits denotes the bank, while the last three digits denotes the branch number. The code is read by a machine which minimizes the chances of error in clearing of cheques, thereby making funds transfer faster and safe.
For example, in the MICR code 400240019 400 denotes Mumbai, 240 denotes XXX Bank and 019 denotes the Area branch of the bank.
You will find the number on the right of the cheque or the bottom of the cheque leaf
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