MICR Full Form
Magnetic Ink Character Recognition Code is the full form of MICR. It is a character recognition technique. MICR is used generally in the banking sectors. Its work is to recognize the originality of a document and helps in clearance of cheques and other documents. In short way, MICR is also called as MICR Code.
As barcodes and other similar technologies, are not easily readable but MICR Code can be easily readable by humans. Know about MICR Full Form in Hindi as well; also know how MICR Code differs from IFSC code etc from below section of this page.
MICR Full Form
‘MICR line’ also called as MICR encoding is printed at the bottom of cheques and includes details such as a bank code, bank account number, cheque number, cheque amount and a control indicator. However, the format of bank code and bank account number varies country wise. Moreover, MICR encoded documents are processed more accurately and faster.
Currently, two kinds of MICR Code are in use: E-13B and CMC-7.
- E-13B: It has 14 characters set which comprises 10 decimal digits.
- CMC-7: It has 15 characters set which comprises 10 numeric digits and 5 control characters.
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MICR Code is written with special magnetic character of ink that is easily identified with magnetic scanner. It is a 9 digit code that helps in identification of bank branches that are involving in Electronic Clearing System.
MICR Code Classification is done as:
- Starting 3 digits of the code signifies: the city code
- Middle one i.e. next 3 digits signifies: the bank code
- Last 3 digits signify: the code of the particular branch.
MICR Number is printed just at the bottom of the cheque and is placed adjacent to the cheque number. It helps in faster clearance of cheque.
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Before 1940s, processing of cheques was done manually but it seems time consuming and was a significant cost was there for cheque clearance and bank operations. As there were rise in the number of cheques, standards were developed by the financial institutions.
In the mid of 1950s, first automatic system was developed in the computer laboratory to do processing of cheques with the use of MICR. After its trial, MICR standard was adopted.
Difference between MICR and IFSC Code:
As we all know, transactions are not limited to banks only, so thorough verification is needed before processing of any transaction. To make the transaction processing easier, banks and various other financial institutions depends on certain kinds of codes. The two codes namely are IFSC and MICR Code. Both works is to verify the authenticity of a transaction but there are few differences between them:
(Know Here: What is the Full Form of IFSC?)
|11-digit alphanumeric code||9-digit code|
|Used to facilitate electronic funds transfer between the banks in India||Used to make processing of cheque simpler and faster.|
|First 4 digits indicate the bank name.||First 3 digits indicate the city code where the bank branch is located.|
|Last 6 digits indicate the location of bank.||Last 3 digit indicate the bank branch code.|
We the team of recruitmentresult.com hopes that the above provided information about MICR Code is understandable to you. We have mentioned MICR Line, MICR Fonts, MICR Code, MICR History, Difference between MICR and IFSC Code on this page. Stay in touch with us for getting more regular updates.
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