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.
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