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.
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.
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.
Emergency expenses knocking on your door? Don’t worry, we have got you covered. Get a Navi Cash Loan in a 100% paperless process, instantly disbursed in a hassle-free manner, to tackle all your unexpected financial emergencies!
We are a diverse group of writers, editors and Subject Matter Experts striving to bring the most accurate, authentic and trustworthy finance and finance-related information to our readers. Our mission is to simplify jargon and industry lingo. We believe sharing knowledge through relatable content is a powerful medium to empower, guide and shape the mindset of a billion people of this country.