Short Notes for DAIBB-Management of Financial Institution: MICR

MICR (magnetic ink character recognition) is a modern technology used to verify the legitimacy or originality of paper documents, especially cheque. A special ink, which is sensitive to magnetic fields, is used in the printing of certain characters on the original documents. Information can be encoded in the magnetic characters. Generally the line of numbers MICR appears at the bottom of a cheque. The MICR number allows computers to rapidly internalize a cheque number, routing number, account number, and other numbers or information from printed documents, Advantages of MICR technology in banking are as:
·         High degree of accuracy
·         The processing of MICR is fast
·         Greater security
·         No manual input as a result errors are reduced
·         Not easy to forge.

Post a Comment