What is the full form of MICR
What is the full form of MICR
MICR: Magnetic Ink Character Recognition
MICR stands for Magnetic Ink Character Recognition. Magnetic ink character recognition code, known in short as MICR code, is a character recognition technology used mainly by the banking industry to streamline the processing and clearance of cheques and other documents.
An MICR code is a 9-digit code that uniquely identifies the bank and branch participating in an Electronic Clearing System (ECS).
It comprises of 3 parts:
- The first three digits represent the city (City Code). They are aligned with the PIN code we use for postal addresses in India.
- The next 3 digits represent the bank (Bank Code)
- The last 3 digits represent the branch (Branch Code)
The MICR code is located on the bottom of a cheque, next to the cheque number. You can also find it printed on the first page of a bank savings account passbook.
The technology allows MICR readers to scan and read the information directly into a data-collection device. Unlike barcode and similar technologies, MICR characters can be read easily by humans. MICR encoded documents can be processed much faster and more accurately than conventional OCR encoded documents.