MICR FULL FORM

Full Form of MICR : Magnetic Ink Character Recognition

What is the full form of MICR?

No:1. The full form of MICR is Magnetic Ink Character Recognition.
No:2. MICR code is a pattern recognition system used mostly by the bank industry to identify the document ‘s originality and to enable the processing and approval of cheque and other papers.
No:3. It is a technology that is used with the help of specific characters and ink.

No.-1. Download 15000 One Liner Question Answers PDF

No.-2. Free Download 25000 MCQ Question Answers PDF

No.-3. Complete Static GK with Video MCQ Quiz PDF Download

No.-4. Download 1800+ Exam Wise Mock Test PDF

No.-5. Exam Wise Complete PDF Notes According Syllabus

No.-6. Last One Year Current Affairs PDF Download

No.-7. Join Our Whatsapp Group

No.-8. Join Our Telegram Group

Characteristics of MICR code

No:1. A MICR code is a nine-digit code that recognises the bank and branch involved in an ECS (Electronic Clearing System) uniquely.
No:2. The MICR code is written next to the cheque number, at the base of a cheque leaf.
No:3. It can also be found printed on the very first page of a bank savings account passbook.

MICR code composed of three parts

No:1. City code – The very first three digits represent the city. They are matched with the PIN code which we use in India for postal addresses.
No:2. Bank code – The next three digits reflect a bank.
No:3. Branch code – The last three figures indicate the branch.

Working of MICR method

No:1. MICR code is displayed with two types of formats on the paper.
No:2. One is CMC-7 and the other E-13B.
No:3. Magnet ink is the ink used in the printing process.
No:4. The MICR code is transferred from the MICR reader, which enables proper reading of the characters that have been blurred by other marks such as signature and stamps.
No:5. One should notice the MICR code when claiming various types of financial transactions, such as investment types or SIP forms, or when sending money.

Features of MICR code

No:1. Even if there is any stamp or sign over it, it is easily recognizable. So it’s beneficial.
No:2. It generates a very secure network as it is hard to track the same ink, which makes forging the document very complicated.
No:3. In this case, the error rate is low.
No:4. MICR fonts that do not meet such criteria are either rejected or not approved.

Difference between the IFSC code and MICR code

No:1. The main difference between the two is the IFSC Code is used to remit money via NEFT and RTGS.
No:2. MICR code, on the other hand, is used only on cheque leaves.
MUST READ : KYC FULL FORM