Bank cheques are a secure and widely used means of financial transactions. At the bottom of every cheque, specific numbers are printed, each carrying important information. These numbers are not random—they serve as security features and reveal various details about the cheque. Many people are unaware of their significance. Let’s uncover what each of these numbers means:
1. Cheque Number
The first set of numbers is the cheque number, consisting of six digits. This number is vital for record-keeping and tracking purposes. When issuing a cheque, the cheque number is the most critical detail to note.
2. MICR Code
The Magnetic Ink Character Recognition (MICR) code is a 9-digit number that can be read by specialized machines. It helps banks identify the branch from which the cheque was issued. The MICR code is divided into three parts, each with a specific purpose.
3. City Code
The first three digits of the MICR code represent the city code, which corresponds to the first three digits of the city’s postal PIN code. This number helps determine the city from which the cheque originated.
4. Bank Code
The next three digits of the MICR code represent the bank code, which is unique to each bank. For example, ICICI Bank’s code is 229, while HDFC Bank’s code is 240. This code identifies the bank to which the cheque belongs.
5. Branch Code
The last three digits of the MICR code are the branch code, which is unique to each bank branch. This code specifies the branch from which the cheque was issued, aiding in smooth transaction processing.
6. Bank Account Number
In newer cheque books, your bank account number is also printed. This feature was not present in older cheque books printed before the implementation of Core Banking Solutions (CBS).
7. Transaction ID
The last two digits printed at the bottom of the cheque indicate the transaction ID. Numbers like 29, 30, and 31 represent “at par” cheques, which can be cleared anywhere in the country. Meanwhile, 09, 10, and 11 represent local cheques that are processed within the same city.
Understanding these numbers not only enhances security but also empowers cheque users with essential knowledge about their financial transactions.
