"Magnetic Ink Character Recognition is the full form of MICR". The MICR code (Magnetic Ink Character Recognition Code) is a pattern recognition system used mostly by the banking industry to identify the originality of a document and to enable the processing and approval of checks and other papers. It is a technology that is used with the help of specific characters and ink.
Characteristics
The MICR code is a nine-digit code that uniquely identifies the bank and branch involved in the ECS (Electronic Clearing System). The MICR code is written next to the check number on the bottom of the check sheet. It can also be found printed on the very first page of a bank savings account passbook.
MICR Code composed of three parts
- City Code - The first three digits represent the city. They are paired with the PIN code we use in India for postal addresses.
- Bank code - The three digits represent the bank.
- CoBranch de - The last three digits indicate the branch.
How the MICR method works
The MICR code is displayed on paper in two types of formats. One is the CMC-7 and the other is the E-13B. Magnetic ink is the ink used in the printing process. The MICR code is transferred from the MICR reader, which allows characters that have been blurred by other marks, such as signatures and stamps, to be read correctly.
You should notice the MICR code while claiming different types of financial transactions like investment types or SIP forms or sending money.
Features
Even if there is some kind of stamp or mark over it, it is easily recognized. So it's convenient. It creates a very secure network because it is difficult to trace the same ink, which makes it very difficult to forge a document.
In this case, the error rate is low. MICR fonts that do not meet these criteria are either rejected or disapproved.