MICR – Full Form, Features, Characteristics and Format
MICR Full Form
MICR full form is Magnetic Ink Character Recognition. It is a technology used in the banking industry to speed up the processing of cheques by allowing the encoded data to be read and processed using magnetic ink.
Characteristics of MICR Code
- It is made up of a variety of distinct characters, including numbers and special symbols.
- MICR code is machine-readable, which allows for faster and more accurate processing than manual processing.
- It aids in the reduction of the risk of fraud and errors in cheque processing.
- The code is used to identify the cheque issuer’s bank, branch, and account number.
MICR Code Format
The MICR code is printed in a particular format that includes the following information:
- The first three digits are the city code, which identifies the location of the bank branch.
- The following three digits are the bank code, which identifies the bank.
- The last three digits are the branch code, which identifies the specific bank branch.
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Features of MICR Code
Here are a few prominent features of MICR Code:
- It consists of a 9-digit code that uniquely identifies a bank branch
- It follows a specific format that includes the city code, bank code, and branch code.
- Allows machines to process cheques and other documents quickly and accurately.
- Cheque processing and other transactions are standard in the banking industry.
Final Word
Now that you are well aware of MICR full form, you should know that MICR code has become an indispensable tool in the banking industry, allowing for the efficient and accurate processing of cheques and other documents. The distinct format and use of magnetic ink ensure secure and dependable transactions, which benefit both customers and financial institutions.
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