Introduction of Online Banking is a breakthrough technology for Indians and it gets possible by the creation of IFSC code and MICR code. For international fund transfer, MICR codes is like a boon and acts as a mediator for money transactions. Basically, MICR codes is a 9 digit serial number which is the combination of bank and branch details. Primary 3 digits of MICR code represent city, next 3 digits represent the bank and the last 3 digits represent bank branch.
Why is MICR Code So Important?
- MICR code is unique for all the banks.
- Third party transaction is not possible without MICR Code.
- Aids in error-proof reading of cheques
- Cuts the time of processing of cheques
You can know Almora Urban Co-Operative Bank MICR Code through Online website or through your Cheque as it is mentioned on your MICR band.
Why is MICR Code Unique?
MICR code basically stands for Magnetic Ink Character Recognition. It is one of the best technologies proposed by American Banking Association. The introduction of MICR code was done to reduce the errors of cheques for the general public. Slow processing of cheques was also one of the reasons for MICR creation. Almora Urban Co-Operative Bank MICR Code aids in the quick processing of cheques reliably without errors.
MICR Characters are printed in MICR fonts which are unique. The ink from which the characters are printed contains iron oxide. These characters are passed through MICR reader, which magnetize them. Then, these typescripts get passed through MICR read head which turns them into a unique waveform which can be only recognized by the optical system.
How to Identify Fraud Cheque through MICR Code?
Many times, people try to fraud with cheques and demand drafts, MICR code is too useful in these cases. Let’s see how:
- According to Cheque Truncation System 2010 (CTS 2010), all the cheques should be pre-printed with account number field and it is necessary for the corporate accounts and account holder.
- MICR Band is located at the bottom of each check or you can say it is “footer” of the cheque. MICR code is mentioned just after the cheque number.
- Bank and Bank Branch name are located at the upper portion of the cheque and is known as “Header” of the cheque, this section also includes Bank logo, the address of the Bank Branch and IFSC Code.
- You can recognize a valid cheque by confirming IFSC Code, MICR code or Branch name and address.
- MICR characters can only be recognized by Optical System when they are true if someone tries to fraud the machine immediately cancel the cheque.
- MICR Code and IFSC Code are always unique for a particular; no two branches have same IFSC or MICR Code. It is also an indication for valid Cheque.
- You must know that MICR Code never starts with 0, so if you find any cheque which has 0 in its MICR Code initially then, return it immediately.
- You can check the details of MICR codes at RBI website as it assures MICR Code to every bank.
Hope! This information helped you.