MICR Code Line Structure – Part 1 – Cheque Serial Number
MICR stands for Magnetic Ink Cheque Recognition technology.
In our country, the MICR technology is a quarter – century old.
At present 90% of Cheques in our country are MICR Cheques.
It is very rare to locate a Non-MICR Cheque in use.
All the information required for processing a MICR cheque, is on the bottom of the Cheque leaf.
Ideally, nothing should be written on the MICR Band, and it should not be damaged, for error-free processing by the MICR machines.
Over a period of time, the awareness amongst Indian public has grown, and at present 98% of the cheques are automatically processed by the MICR Band.
Over a series of posts, I would be writing about the features of the MICR Band.
As mentioned earlier, the source of the data is the Reserve Bank of India website coupled with my insights.
MICR Code Line Structure
The code line occurring in the Read Band is divided into five fields with distinct delimiters separating each field, the details of which are as under:
- i. Cheque serial number of six numeric digits preceded and followed by a delimiter. The alpha-numeric prefix to the serial number normally used by banks should be printed outside the code line in close proximity, just above the read band, in normal ink.
As on date, the cheque serial numbers should be six numeric digits only.
i.e from 000001 to 999999
So, far there has been no need to increase the field from six numeric digits to seven numeric digits.
It is observed, that Organizations tend to open new accounts depending on the accounting systems at their end.
Hence, a SIX DIGIT LIMIT is fine.
It is be noted that for Internet Banking transactions as well as bulk uploads cheque number is not mandatory.
Hence, a banking account can be debited by way of cheque or without a cheque also.
However, many banks as a security measure insist on a cheque leaf, for branch level transactions.