The abbreviation for MICR is Magnetic Ink Character Recognition, it is a character recognition technology used primarily by the banking industry to facilitate check processing. MICR characters are printed on special fonts with magnetic ink or toner, which usually contains iron oxide. A special machine is used to read these characters, which can be easily read by humans as well. Characters are usually printed on the bottom strip of the check sheet. This MICR code is used by the RBI (Reserve Bank Of India) clearing process to identify the branch and the bank for clearing processes.MICR it is a nine-digit numeric code where every three digits means important information about the bank and the transaction. The first three digits of the MICR represent the city code that indicates the city in which the bank branch is located. In most cases are the first three PIN code numbers as for Delhi the first three numbers will be '110'. The next three digits represent the bank code, ie the identity of the bank and the last three digits represent the bank branch code, ie the identity of the location of the bank branch.

Uses of MICR Codes:

  • Magnetic ink character recognition is a small reading error rate.
  • MICR scanners are developed to accurately decode characters as long as they follow standards set by the American Bankers Association.
  • These standards are quite high and can be difficult to achieve, which can be a clear disadvantage for some institutions. ANSI manages and implements all printing standards.
  • If MICR sources do not meet established standards, they will cause processing errors and will be rejected in banks and other institutions.
  • Magnetic ink character recognition technology is mainly used by banks to verify the validity of checks; Some airlines use them to validate airline tickets.
  • The characters and numbers are usually found at the bottom of the checks. Laser printers that use MICR toner are used to print the magnetic ink characters.