MICR - Magnetic Ink Character Recognition.
MICR Code is a character-recognition technology used mainly by the banking industry
to ease the processing and clearance of cheques and other documents. The MICR encoding,
called the MICR line, is at the bottom of cheques and other vouchers and typically
includes the document-type indicator, bank code, bank account number, cheque number,
cheque amount, and a control indicator.
How MICR Code Is Formed?
It is a nine digit numeric code where every three digits implies some critical data
about the bank and the exchange. The initial three digits of the MICR represent
the city code which demonstrates the city in which the bank office is found. In
the most of the cases it is the initial three numbers of PIN code like for Delhi
the initial three numbers will be '110'. The following three digits represent the
bank code i.e. the character of the bank and the last three digits represent the
bank office code i.e the identity of the area of the bank office.