What is the full form of MICR in computers?
The full form of MICR in computers is Magnetic Ink Character Recognition. MICR code (Magnetic Ink Character Recognition Code) is a pattern recognition system that is primarily used in the banking industry to verify the authenticity of documents and to facilitate the processing and approval of cheques and other forms of paper. MICR code is an abbreviation for Magnetic Ink Character Recognition Code. Ink and certain characters are utilized to create this technology, which is referred to as “ink-jet printing.”
The MICR code has the following characteristics:
A MICR code is a nine-digit identifier that is used to identify the bank and branch that is participating in an ECS (Electronic Clearing System) transaction. The MICR code is inscribed at the bottom of a cheque leaf, next to the cheque number, next to the check number. Another place to look for this information is on the very first page of a bank’s savings account passbook.
The MICR code is divided into three sections.
City code – it is represented by the first three digits of the number. PIN codes are used in India to identify postal addresses, and these codes are matched with the PIN codes.
Bank code – The following three numbers are used to identify a particular bank.
Branch code – The last three figures of the branch code show which branch it is.
The operation of the MICR technique
There are two different formats for displaying the MICR code on the paper. One is designated as CMC-7, while the other is designated as E-13B. It is the ink that is utilized during the printing process that is known as magnet ink. The MICR code is conveyed from the MICR reader, which allows for appropriate reading of the characters that have been blurred by other marks such as signatures and stamps to be accomplished with more accuracy.
When claiming various types of financial transactions, such as investment types or SIP forms, or when sending money, it is important to pay attention to the MICR code.
Characteristics of the MICR code
- Even if there is a stamp or sign on top of it, it is still immediately distinguishable. As a result, it is advantageous. Due to the difficulty in tracking down the same link, it generates a very secure network, which makes faking the document extremely difficult.
- In this particular instance, the mistake rate is minimal.
- MICR typefaces that do not meet these requirements are either rejected or do not receive final approval.
What is the difference between an IFSC code and a MICR code?
The most significant distinction between the two is that the IFSC Code is utilized to send money via NEFT and RTGS, but the SWIFT Code is not. The MICR code, on the other hand, is only utilized on the back of cheques.
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