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Why is MICR useful in bank cheque processing?

Answer and explanation

Correct answer: It reads special characters printed in magnetic ink quickly and reliably

The governing concept is Magnetic Ink Character Recognition. Bank cheques commonly contain specially formed characters printed in magnetic ink along the code line. A MICR reader senses and interprets those characters so banks can capture routing, account, and cheque information quickly and reliably, even during high-volume processing. Therefore, option C is correct. It is not a colour printer, internet connector, or signature generator.

Related tags

MicrBank-ChequeMagnetic-InkRecognitionBasic Components Of A Computer SystemIct (Information & Communication Technology) Skills IIct Information Communication Technology Skills IArtificial Intelligence

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