MICR Code in banking:
Posted in: Banking on: July 11, It is a code located at the bottom of the cheque which is known as MICR line. It is a nine digit numeric code printed in magnetic ink.
With the help of MICR code, we can identify the bank and the branch. The MICR code is also printed on the first page of bank account book. Usually MICR code is placed at the bottom of the cheque.
The ink used to print the code is made of iron oxide. These codes can be easily readable by humans. Usually two types of MICR fonts are being used. The font widely used for the code is the standard E13B which has special shaped characters.
Where is MICR code on cheque:
It contains not only numbers but also symbols. These characters can be read at high speed.
It is the most common font used to print the MICR code worldwide. When a cheque is passed to the MICR reader, the magnetic ink characters in the cheque produce a unique waveform for every character which can be recognized by the reader.
When a cheque is placed in the reader, MICR code can be easily readable even it is overprinted or having any other pen marks or stamps on it.
What is a Cheque
Thus, the error rate by this code is very minimal. The processing time of cheques before the introduction of MICR is vast. RBI introduced many safe methods for the transaction in s.
चेक के निचे लिखे होते हैं 23 नंबर, क्या आप जानतें हैं इनका मतलब?
MICR code usage is one such safe and quick method to clear transactions. This MICR had been accepted by many countries in the world.
Learn the art of Financial Planning
MICR Code has 9 digits of numerical value which represents respectively the city code, bank code and branch code. First three digits represent the city where the bank branch located, and it is related to the pin code of that area.
Each and every branch has a unique MICR code and the code is printed in cheques at the bottom, after the cheque number. By using MICR code, possibility of error during a process is eliminated and the bank branch can be easily identified with this code.
Features of Cheque
Here the electronic image of cheque is used instead of physical ones. Some of the financial transactions require this MICR code.
It is different from the IFSC code. As the MICR code is much useful for the clearing processes, it became mandatory to mention it on the bank account book and in bank statements.
Thank u. Man Singh - Nov 20, Plese send me micr code no of sbi branch buhana.