BANKING AFFAIRS

Detailed explanation-1: -MICR (magnetic ink character recognition) is a technology invented in the 1950s that’s used to verify the legitimacy or originality of checks and other paper documents. Special ink, which is sensitive to magnetic fields, is used to print certain characters on the original documents.

Detailed explanation-2: -Magnetic ink character recognition code, known in short as MICR code, is a character recognition technology used mainly by the banking industry to streamline the processing and clearance of cheques and other documents.

Detailed explanation-3: -The magnetic ink allows a computer to read the characters even if they have been covered with signatures, cancellation marks, bank stamps, or other marks. MICR lines help facilitate automatic check-clearing when banks send their checks to central processing systems at the end of the day.

Detailed explanation-4: -MICR ink is magnetic ink used for check–printing on Inkjet printers. MICR toner is used for check-printing on laser printers. There are two types of MICR toner: Originally Manufactured and Remanufactured MICR Toner.

Detailed explanation-5: -MICR on cheques can be found at the button left in the form of a string of characters and unlike barcodes, MICR can be read by humans without the need for any special equipment. It is made up of three important groups of numbers that include the bank code, the account number, the cheque number and a control indicator.