Apex Indian Bank, the Reserve Bank of India on 21 April 2012 directed all commercial banks to print the MICR and IFSC code on the passbook and statement of account of the customers. The bank made the printing of MICR and IFSC code compulsory for all the banks.
The banks, under their current practice, provide MICR code on the cheque leaf along with the IFSC code of the branch.
Under the RBI guidelines, MICR code is mandatory for all electronic clearing services (credit and debit) transactions. IFSC code is a pre-requisite for national electronic funds transfer (NEFT) and real time gross settlement (RTGS) transactions.
Important Points:
MICR (Magnetic Ink Character Recognition) is the bottom line on all checks. It is printed using a special font.
IFSC Code (Indian Financial System Code) is an eleven character code assigned by RBI to identify every bank branches uniquely, that are participating in NEFT system in India. This code is used by electronic payment system applications such as RTGS, ,National Electronic Fund Transfer and CFMS.
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