There is a trend of sending money online these days. Whether the payment is big or small, people now consider the online option as faster, safer, and easier. In this era of online payment, nowadays people and especially youth have forgotten to pay through cheques.
However, some people still consider it better and safer to pay through cheques. While paying through cheque, they make the payment but they would hardly know about the details printed on those cheques. Today we are going to tell you about the nuances of this cheque. Let us tell you that IFSC and MICR are written in the cheque, which we are going to tell you today.
What is MICR Code?
The full name of MICR is Magnetic Ink Character Recognition Code which is 9 digits. This code identifies the bank branches that are part of the Electronic Clearing System (ESC). This code is used in the cheque-clearing process.
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For your attention, let us tell you that this code is printed in dark black ink on the bottom side of the cheque. This is the MICR code and only the bank can decode it. This code also shows the branch of the bank. This code works on character recognition technology.
What is IFSC Code?
The full form of the IFSC code is Indian Financial Service Code which is an eleven-digit number. This code is used in NEFT, IMPS, and RTGS transactions. This code is also written on the leaf of your chequebook.
What is the difference between MICR and IFSC Code?
On the one hand, IFSC Code is used for online or electronic payments within the country. So on the other hand MICR code is used to transfer funds globally.
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IFSC Code contains branch code apart from bank code, whereas, MICR Code contains bank and branch code as well as pin code.
