This is the first post in the series of Jargons of Online Banking.
MICR stands for Magnetic Ink Character Recognition. It's a technology to process cheques. In cheques the bottom area is called MICR band and has MICR code next to cheque number.
1) Cheque Number - It will be of first 6 digits in MICR band.
2) MICR Code - It's a 9 digit code. It constitutes a code to represent city, band and branch (3 digits each). This nine digit code is unique for any bank-branch combination.
Click on abpve photograph to see it enlarged.
Please note that MICR code cannot start with 0. If your cheque shows MICR starting with 0, it implies that it is wrong, probably because your cheque is At Par cheque.
MICR Code of all the Indian banks can be found at RBI's site here.