What is the Full Form of MICR | Physics Wallah

Full Form of MICR

MICR full form is Magnetic Ink Character Recognition. MICR is a code which is used in the banking sector. It is having a completely unique print technology which is used to permit a machine to read, process and record information. MICR can't be faked or copied because of the use of magnetic fonts and the unique font used in it.

Components of MICR

The MICR code is a 9-digit code which consist of 3 groups of numbers. You can locate the MICR code printed on a cheque leaf or the passbook's first page which is next to the cheque number.

• City Code: The first 3 digits of the MICR code shows the City code. This city code is as same as the pin code.
• Bank Code: The next 3 digits are called the Bank code.
• Branch code: The last 3 digits are called the Branch code, representing the bank's branch.

For example, if 213476780 is the MICR code printed at the bottom of a cheque, then 213 represents the city code, 476 represents the bank code, and 780 represents the branch code.

History of MICR Code

MICR was first developed in the 1950s by the American Bankers Association and is now usually used globally across numerous countries, with one being in India. After its invention in 1958, the machine was first introduced in India by the Reserve Bank of India (RBI) in the 1980s. To check the MICR code of different banks and branches, they can use the website of the RBI.

Features of MICR Code

• Due to the state-of-art technology of a MICR machine which can read it, MICR code could never be faked.
• The MICR code is not as same as the IFSC code, the former is usually used to process cheques while the latter is used for transferring the money from one account to another.
• The ink bars printed on a cheque at the bottoms, they also represent the MICR magnetic code.
• The MICR code is unique to a particular bank.
• Even if any stamps on the code reduces its visibility, MICR machines can still read the codes because of their fine nature.