The Full Form Of MICR
What Is The Full Form Of MICR? The full form of MICR is Magnetic Ink Character Recognition. MICR is a technology utilized in the recognition of the creativity of the document with the aid of special ink and characters. They’re printed on the bottom of bank checks consisting of two digits. First, three suggestions about the town code, next 3 about represent bank code, and last 3 tell about the division code. This is named the MICR code. Cheques were processed.
The clearance of cheques took a lot of time. Day-by evening the number of checks increased, which makes processing difficult. Throughout the mid-50s, Stanford University Research Institute and General Electric Computer Laboratory developed the first system to process cheques using MICR.
HOW MICR Works.
MICR code is printed on a document using two types of fonts, one is E-13B along with other is CMC-7. The ink is magnetic. The MICR code has been transmitted by the MICR reader that allows the characters to read effectively that have been obscured by other brands such as stamp and signatures. History. Before the mid-40s, cheques were processed utilizing the Sort-A Matic or Top Tab Key procedure.
The processing and clearance of checks were very time intensive and was a cost in cheque clearance and bank operations. As the number of checks increased, ways were sought for automating the procedure.
Standards have been developed to ensure the consistency of financial institutions. By the mid-50s, the Stanford University Research Institute and General Electric Computer Laboratory had developed the first automated system to process cheques using MICR. The same team also developed the E13B MICR font. E pertains at the font being the 5th considered, and B at the simple fact that it was the second version. The 13 pertains to the 0.013-inch personality grid.
- It is easily readable if it’s some stamp or signature it over.
- It provides high degree security as it’s challenging to follow the precise ink that makes it hard to invent the document.
- the error rate is small.
- It has a high standard of demand. MICR fonts that don’t meet these requirements are rejected.
- The cartridges are much costly than the standard cartridges.