Handwritten character recognition has been one of the most fascinating research among the various researches in field of image processing. In Handwritten character recognition method the input is scanned from images, documents and real time devices like tablets, tabloids, digitizers etc. which are then interpreted into digital text. There are basically two approaches - Online Handwritten recognition which takes the input at run time and Offline Handwritten Recognition which works on scanned images. In this paper we have discussed the architecture, the steps involved, and the various proposed methodologies of offline and online character recognition along with their comparison and few applications.