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Difference Between IFSC And MICR Code

Today monetary transactions are not limited to a bank or a country which makes it mandatory for every financial institution to do a verification before processing. To make this process faster banks and financial institutions are taking help of few codes to simplify and automate there processes. IFSC and MICR code plays an important role in this parlance. Lets have a clear understanding of both of these codes and there importance.

Find MICR Code of All Banks in India HERE


IFSC (Indian Financial System Code) is a 11 digit alpha numeric code issued by the RBI (Reserve Bank Of India). This is a unique code provided to each bank branch for easy identification of individual bank branches in India. RBI have developed different payment system applications such as RTGS (Real Time Gross Settlement) and NEFT ( National electronic fund transfer) and CFMS ( Centralized funds management system) to make all money transactions electronic across India. The banks using electronic payment system, uses this unique code to identify each bank branch in India to make all type of electronic money transactions without any confusion.

How IFSC Code Is Formed?

IFSC is a 11 digit code The first four characters of this alphanumeric code disclose the name of the bank. The fifth character has been kept zero to accommodate expansion of branches. Last 6 characters in the code tell the exact location of the bank. The IFSC code is even printed on the cheque books issued by all banks and one can know the IFSC code by looking at the cheque slip.

  1. ICIC                   BANK BRANCH (ICICI BANK LTD)
  2. 0                         ZERO ( Reserve For Future Use)
  3. 000021             BRANCH CODE (GURGAON)




MICR (Magnetic Ink Character Recognition), as name suggest it is a character recognition technology which helps in faster processing of cheques. Every bank branch is given a unique MICR code and this helps the RBI to identify the bank branch and speed up the cheque clearing process. You can find a magnetic inks bar codes printed on the bottom of your bank’s cheque leaves.

Find IFSC Code of All Banks in India HERE

How MICR Code Is Formed?

It is a nine digit numeric code where each three digits signifies some important information about the bank and the transaction. The first three digits of the MICR represent the city code which indicates the city in which the bank branch is located. In most of the cases it is the first three numbers of PIN code like for Delhi the first three numbers is going to be ‘110’. The next three digits represent the bank code i.e. the identity of the bank and the last three digits represents the bank branch code i.e the identity of the location of the bank branch.

  1. 110                           CITY CODE (DELHI)
  2. 229                           BANK CODE (ICICI BANK)
  3. 003                           BANK BRANCH CODE (GURGAON)


What Is The Difference Between IFSC Code And MICR Code?

  • IFSC code is developed to initiate electronic money transfer between banks within India, MICR is a Magnetic Ink Recognition technology for making cheque processing faster and simpler.
  • IFSC code is alphanumeric 11 digits unique code, whereas MICR is a 9 digit numeric code.

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About the Author: Praveen Unnikrishnan


  1. Can we left the numerical code of IFSC code from an Account number while writing the account number? If no
    then please explain the reason.

  2. Can we left the numerical code of IFSC code from an Account number while writing the account number? If no
    then please explain the reason.

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