The MICR Full form is Magnetic Ink Character Recognition. It’s a special code that banks use to process cheques quickly and safely. The code is printed at the bottom of every cheque and is made up of 9 digits.
What Does the MICR Code Mean?
The Meaning of MICR is simple! The code is used to identify which bank and branch the cheque is from. The 9 digits in the MICR code are split into three parts:
- First 3 digits: Tell us which city the cheque is from.
- Middle 3 digits: Show the name of the bank.
- Last 3 digits: Identify the specific branch of the bank.
For example, if a cheque has the MICR code 123456789, the numbers would tell you the city, the bank, and the bank branch.
Why is the MICR Code Important?
The Definition of MICR explains that the code is printed using magnetic ink, which can be read by machines. This helps banks process cheques faster and ensures that the right bank branch gets the cheque.
It also makes cheques safer because the special ink is hard to copy. This helps protect your money from being stolen through fake cheques.
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