Advantages of MICR | disadvantages of MICR
This page covers advantages and disadvantages of MICR. It mentions MICR advantages or benefits and MICR disadvantages or drawbacks. MICR stands for Magnetic Ink Character Reader.
What is MICR?
The MICRs are used to read the characters inscribed on documents with ink and containing magnetized particles. MICR is used in banks to process large volumes of cheques being handled every day. Banks which employ MICR technology use special type of cheques.
The bank's identification code (viz. name, branch etc.), account number and cheque number are preprinted using characters from special character set on all these cheques with special ink which contains magnetizable particles of iron oxide before cheques are given to customer for use. The sample cheque which uses MICR technology is depicted in the figure-1. The information on the cheque is processed using MICR reader which updates accounts and performs various other processes.
Benefits or advantages of MICR
Following are the benefits or advantages of MICR:
➨In spite of rough handling, one can read the MICR information with high degree of accuracy.
➨The processing of MICR information is fast.
➨It offers greater security compare to OCR technology as printed characters can not be altered.
➨There is no manual input and hence errors are reduced.
➨The characters can be read even if somebody write on them. This is due to the fact that special ink containing iron particles is used to print the characters.
➨The document is not easy to forge.
Drawbacks or disadvantages of MICR
Following are the drawbacks or disadvantages of MICR:
➨It can recognize only 10 digits & 4 special characters.
➨Alphanumeric characters are not used in MICR. Only certain characters can be read.
➨It is more expensive method of data entry.