What is a MICR Code?


The word MICR stands for ‘Magnetic Ink Character Recognition’, it is basically a code that does the character acknowledgement and the main use of MICR Code is in banks where it simplifies the processes of all the documents and also does the clearance of cheque.  The MICR encoding is also known as MICR line which is written over the bottom of the cheque. The MICR Code indicates different set of numerical which is either a bank code, bank account number or a cheque number. Every bank code & bank account varies from country-to-country and the innovation permits MICR per users to output and read the data straightforwardly into an information assortment gadget. Dissimilar to standardized tag and comparative advancements, MICR characters can be perused effectively by people. MICR encoded archives can be handled a lot quicker and more precisely than traditional OCR encoded records.

MICR Reader

MICR characters are imprinted on records in one of the two MICR textual styles, utilizing magnetizable generally known as attractive ink or toner, for the most part containing iron oxide. In examining, the record is gone through a MICR examine and performs two capacities: charge of the ink, and discovery of the characters. The characters are perused by a MICR read head, a gadget like the playback top of a recording device. As each character ignores the head, it delivers a novel waveform that can be handily distinguished by the framework.

The utilization of MICR permits the characters to be perused dependably regardless of whether they have been overprinted or clouded by different imprints, for example, abrogation stamps and the signature. The fault level for the attractive filtering of an ordinary check is littler than with optical character acknowledgment systems. For very much printed MICR reports, the “can’t peruse” rate is generally under 1%, while the replacement rate (misread rate) is in the request for 1 for each 100,000 characters. Rejected things are hand handled.

MICR per users are the essential apparatus for check arranging and are used over the check dispersion network at different stages. For instance, a vendor will utilize a MICR peruse to sort checks by bank and send the arranged checks to a clearing house for redistribution to those banks. Upon receipt, the banks play out another MICR Code to figure out which client’s record is charged and to which branch the check ought to be sent on its way back to the client. Be that as it may, numerous banks not, at this point offer this last advance of restoring the check to the client. Rather, checks are examined and put away carefully. Arranging of checks is done according to the topographical inclusion of banks in a country.


Flashback of MICR

Prior to the mid-1940s, checks were prepared physically utilizing the Sort-A-Matic or Top Tab Key technique. The handling and freedom of checks was very tedious and was a huge expense under control flexibility and bank tasks. As the quantity of checks expanded, ways were looked for computerizing the cycle. Principles were created to guarantee consistency in budgetary establishments. By the mid-1950s, the Stanford Research Institute and General Electric Computer Laboratory had built up the primary robotized framework to deal with checks utilizing MICR. A similar group additionally built up the E13B MICR text style. “E” alludes to the textual style being the fifth thought of, and “B” to the way that it was the subsequent rendition. The “13” alludes to the 0.013 inch character network.

The preliminary of MICR E13B text style was appeared to the American Bankers Association (ABA) in July 1956, which received it in 1958 as the MICR standard for debatable records in the United States. ABA embraced MICR as its standard since machines could peruse MICR precisely, and MICR could be printed utilizing existing innovation. What’s more, MICR remained machine coherent, even though over stamping, checking, mutilation and the sky is the limit from there. The principal checks utilizing MICR Code were printed before the finish of 1959. Despite the fact that consistence with MICR guidelines was deliberate in the United States, it had been generally received in the United States by 1963. In 1963, ANSI embraced the ABA’s E13B text style as the American norm for MICR Code printing, and E13B was likewise normalized as ISO 1004:1995.

During the 1960s, the MICR number styles turned into an image of advancement or futurism, prompting the making of copy “PC” typefaces that imitated the presence of the MICR number styles, which dissimilar to genuine MICR number styles, had a full character set.

Advantages of MICR Code

Following are the advantages or points of interest of MICR:

  • In dislike of unpleasant taking care of, one can peruse the MICR data with serious extent of exactness.
  • The preparing of MICR data is quick.
  • It offers more noteworthy security contrast with OCR innovation as printed characters cannot be adjusted
  • There is no manual info and subsequently mistakes are diminished.
  • The characters can be perused regardless of whether someone compose on them. This is because of the way that extraordinary ink containing iron particles is utilized to print the characters.
  • The archive isn’t anything but difficult to fashion.

Details of MICR Code

Micr Code details involves the check subtleties that incorporates the chronic number and the 9-digit number. Initial three digits introduced in MICR Code details alludes to the city and henceforth every city has various digits, center three digit numbers means the bank and last three digits demonstrates the branch of the bank. Establishment of code was done by the ‘Reserve Bank of India’ and the sole purpose is to make National Electronic Fund Transfer (NEFT) faster and effectively. MICR Code details are imprinted on the cheque with the help of Magnetic Ink Character Recognition and the code details are very important and it helps in the quick processing as well.

MICR Code is not only printed on cheque but on passbook as well. Yes, MICR Code in passbook is also available and it can be seen on the first page only of the saving account passbook. Every bank has different MICR Code in passbook and it will be same as it is in the cheque book. If you’re unable to find the MICR Code in passbook then you can simple Google it and see the images.

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