MICR Code
Magnetic ink character recognition (MICR) line. The line of numbers near the bottom of a check, which may include the bank routing number, the customer account number, the check number, the amount, and other information, printed in magnetic ink so that the information can be read electronically. (Federal Reserve Board)
MICR Code full form is Magnetic Ink Character Recognition. Back in the 1980s, the Reserve Bank of India introduced this 9-digit code for safe and effective payments. The RBI assigns each bank a distinctive MICR Code. It comprises a character-recognition technology that allows bankers to identify bank branches and speed up the cheque clearing process.
The MICR Code is used to identify a bank and branch participating in the ECS Credit scheme. This nine-digit code is unique and ensures that all banks using cheques for financial transactions are recognised by the RBI. The MICR Code is generally located at the bottom of each cheque leaf in your cheque book, representing a thin strip. You can also search for the MICR Code of your bank branch online. (DBS)
MICR stands for Magnetic Ink Character Recognition. MICR is a process by which documents are printed using magnetic ink/toner and special fonts to create machine-readable information for quick processing of paper-based payments. The 65 digit line of numbers and characters that make up the MICR line is printed in the area 0.625 inches from the bottom edge of a check.
The special MICR font that is used in North America is known as E-13B. When positioned in the proper location, the characters printed in the MICR font allow check readers to scan the appropriate bank and customer account information to facilitate automated check clearing by financial institutions. ( History of MICR)
Federal Reserve's Key Policies for the Provision of Financial Services. (2013). Glossary. Federal reserve. URL: https://www.federalreserve.gov/paymentsystems/pfs_glossary.htm
What is Magnetic Ink Character Recognition?.(2021). DBS. URL: https://www.dbs.com/digibank/in/articles/pay/what-is-micr-code
Oeser, S. (2019). History of MICR - Magnetic Ink Character Recognition. Relyco. URL:https://bit.ly/3uodUnK