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MICR stands for Magnetic Ink Character Recognition

In olden days cheques were validated and passed manually. The account numbers had to manually validated and tagged. This MICR is a magnetic code that is printed on the bottom of the cheque. When the cheque is placed under a MICR reader, the machine would automatically identify the account number and details of the person who issued the cheque.

This aids in faster processing of cheques. Also counterfeit cheques would not be passed by this way.

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16y ago

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