What is the full form of MICR?

By Harshal Vispute|Updated : August 22nd, 2022

The acronym MICR stands for magnetic ink character recognition. Using magnetic ink character recognition (MICR) is a technique for processing and identifying checks. The MICR is the series of characters at the bottom left corner of a check. The three sets of numbers include the account number, the check number, and the bank routing number. Both humans and sorting machines should be able to read MICR numbers. They are impossible to falsify or duplicate since magnetic ink and distinctive fonts are used. The technology's benefits include automated check processing and improved fraud protection. The MICR system was developed in the late 1950s and is now utilized globally.

Working of MICR method

  • In the document, the MICR code is shown in two different ways.
  • CMC-7 is one, and E-13B is the other. The ink used in printing is called magnet ink.
  • The characters that have been obscured by other marks, such as signatures and stamps, can be appropriately read thanks to the transfer of the MICR code from the MICR reader.
  • When filling out various financial transaction forms, such as investment or SIP forms, or when sending money, one should take note of the MICR code.

Summary:

What is the full form of MICR?

A method known as MICR (magnetic ink character recognition) is used to confirm the validity or authorship of paper documents, particularly checks. On the original documents, specific characters are printed using special ink that reacts to magnetic fields. Magnetic characters can include information that has been encoded.

Using MICR can improve security and reduce some sorts of crime's financial losses. Suppose a document has been tampered with, such as a fake check made on a color copier. In that case, the magnetic-ink line may either not react to magnetic fields or provide an error code when scanned by a machine intended to read the data in the magnetic characters. If the MICR reader detects a pattern of faulty check writing by the account owner, even a valid check may be refused. Retailers frequently use MICR readers to reduce their exposure to check fraud. The technology is also used by businesses and government organizations to expedite the sorting of papers.

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What is the full form of MICR FAQs

  • In the document, the MICR code is shown in two different ways. CMC-7 is one, and E-13B is the other. The ink used in printing is called magnet ink.

  • When banks send their checks to central processing systems at the end of the day, MICR lines aid in automatic check-clearing. They are also made to be simple to read for humans, making it simple to communicate and check information.

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