Q24. What does MICR stands for? Who uses MICR? What are the advantages and disadvantages of MICR?
Ans. MICR stand for magnetic ink character reader. MICR army rally used by banks. In a cheque, for instance, the bank branch code, account number and cheque number of pre printed at the bottom using magnetic ink.
1. Documents prepared for MICR a difficult to forge.
2. Documents can still be read after being folded or split etc.
1. MICR readers and encoders are expensive.
2. The system can only accept a few characters.