The first three digits of the Magnetic Ink Character Recognition number on your cheque specifies the ____________ code in which you have the bank account.
Show answer & explanation
Correct answer: A
Explanation
The correct answer is Option 1 i.e. city.
The first three digits of the Magnetic Ink Character Recognition (MICR) number on a cheque represent the city code where the bank branch is located. MICR numbers are printed using magnetic ink for faster and error-free processing of cheques by machines. The nine-digit MICR code is divided into three parts: the first three digits for the city, the next three for the bank, and the last three for the branch. Thus, these initial digits identify the location of your bank account.