The Full form of MICR is Magnetic Ink Character Recognition.
The MICR is an advanced technology that is often utilized to eliminate the chances of fraud. This advanced tech which is popularly known as MICR is a smart method to check the authenticity of checks. With the help of this technology, the checks are processed, and chances of fake checks are eliminated easily.
This process consists of check no. , bank routing no., and user’s account no. With the data of these, three group numbers the MICR technology operates the process.
Moreover, the MICR no. consists of the 9 characters long routing no., the 12 digits account no. and the 4 characters check no. Combining all these numbers is known as a MICR, i.e., magnetic ink character recognition no. the line which is utilized to allow the machine to examine, process, and store data.
Highlights and Significance of MICR
- MICR is a collective line of numbers that are mentioned on the left side of the personal check at the bottom. It consists of check no., routing no, and account no.
- Magnetic ink character recognition numbers can be easily read by the machine as well as individuals.
- The MICR no. consists of a series of unique digits that can not be faked, duplicated, or copied. A unique ink and font are utilized to mention this MICR no. on the check.
- The MICR advanced technology is way more secure, safe and eliminates the chances of check frauds. It increases the security in the mechanism of check processing.
- This advanced technology was founded in the year 1950 and is now infused across the world by several entities.
Advantages of MICR
As the MICR technology is one of the most advanced technologies, it is used and adopted by several countries across the globe. There are numerous benefits of infusing and using this smart technology, and they are as follows:
- The easy and smooth method
The most beneficial advantage of utilizing the MICR advanced technology is the initiation of the examination of the checks with the help of simple routing no.
This tech helps in processing the checks as well as deducting the amount of the checks easily and smoothly.
With the help of routing no. technique, the concerned authority can identify the bank branch in which the account is and from which the amount is going to be drawn.
- Identify fraud scenarios
With the help of this advanced technology, the concerned bank authorities can identify the scenario of check fraud easily. MICR digit consists of a unique digit line that can not be copied because of the unique font and size it is mentioned with. Magnetic Ink Character Recognition helps in identifying such fake check cases and also prevents the cases of check altering. In case of a fake check, the MICR advanced technology instantly examines routing no. and shows that the said check is fake.
Magnetic Ink Character Recognition technology was established with the primary aim of enabling faster check processes and eliminating the chances of fraud checks. This system is a vital element in preventing and combating cases of fraud.