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_____ is a technique used for processing bank cheques.

AMICR

BOMR

COCR

DDDR

Answer:

A. MICR

Read Explanation:

  • MICR (Magnetic Ink Character Recognition) is a technology used to process bank checks.

MICR (Magnetic Ink Character Recognition)

  • MICR (Magnetic Ink Character Recognition) is a technology used primarily by the banking industry to streamline the processing and clearance of checks and other financial documents.

  • It enables the information printed with special magnetic ink to be read quickly and accurately.

How it works

  • Magnetic Ink: Unique characters (numbers and symbols) are printed on the bottom of bank checks using a special ink containing iron oxide particles, making them magnetized. These characters typically include the check number, bank routing number, and account number.

  • Magnetic Reader: When a check passes through a MICR reader, the magnetic ink characters are magnetized and then read by a special head that detects magnetic signals.

  • Character Recognition: The unique magnetic patterns of each character allow the reader to accurately identify the digits, even if they are obscured by other marks or stamps, reducing errors and fraud.

Benefits

  • Speed and Efficiency: MICR technology significantly speeds up the processing of millions of checks every day because it can read information much faster than manual entry or optical scanning.

  • Accuracy: The magnetic properties of the ink make the letters highly resistant to smudges, wrinkles, or other damage that could affect optical readability, ensuring high accuracy.

  • Security: The use of special magnetic ink makes it difficult to fraudulently alter checks, increasing security in banking transactions.

  • Automation: It facilitates automated sorting and processing of checks, reducing the need for manual intervention.


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