MICR full form in Banking is Magnetic Ink Character Recognition Technology, a code created on a cheque by the bank to inspect its originality. This code should be mentioned if one files any financial transaction form. These forms can include any SIP form or investment form. In simple words, MICR is used to process and identify process checks.
MICR is the print technology that allows a device to read records and process information. Due to the use of unique font and the use of the magnetic font in it, it cannot be copied or faked.
Features of MICR
A MICR, a 9-digit code, helps identify the branch and bank indulged in an Electronic Clearing system uniquely. It is printed at the base of a cheque leaf next to the cheque number. However, MICR can also be spotted on the start page of a bank savings account passbook.
Working on MICR method
There are two types of formats in which the MICR code is displayed. These are CMC-7 and E-13 B. The nine-digit code is conveyed from the MICR read, allowing a more precise reading of the texts blurred by stamps or signatures.
MICR is composed of three parts
- Bank Code
- Branch Code
- City Code