In banking technology, MICR is expanded as Magnetic Ink Character Recognition. In MICR, the letter C stands for what?

Introduction / Context:
This question is taken from computer applications in banking. MICR is a specialised technology used by banks to read information on cheques using magnetic ink. Many competitive exams require you to know the full form of MICR and, in particular, what each letter stands for. Even if the full expansion is known, questions may ask about specific letters, such as C in this case. This helps test your attention to detail and familiarity with industry terminology.

Given Data / Assumptions:

• MICR stands for Magnetic Ink Character Recognition.
• The question focuses on the letter C within MICR.
• Options include Code, Colour, Computer, Character and Cheque.
• We assume basic awareness of how bank cheque processing works using MICR lines.

Concept / Approach:
The standard expansion of MICR is Magnetic Ink Character Recognition. The technology uses special characters printed in magnetic ink at the bottom of cheques, which can be quickly read by machines. The magnetic ink allows reliable reading even when normal optical characters might be difficult to scan. In this full form, the word that begins with the letter C is Character. Therefore, in MICR, C stands for Character and not for code, cheque or computer. Once you recall or reconstruct the full phrase, it is straightforward to identify the correct word from the options.

Step-by-Step Solution:

Verification / Alternative check:
Banking and computer awareness textbooks consistently state that MICR technology reads the characters printed at the bottom of cheques. Diagrams usually label this section as the MICR line containing characters for bank code, branch and cheque number. The terminology emphasises characters, not codes or computers, even though codes are encoded in those characters. When you see MICR explained on bank websites, they repeat the full form Magnetic Ink Character Recognition. This repetition across sources verifies that C stands for Character and that the other suggested words in the options are distractors.

Why Other Options Are Wrong:

• Code: While MICR characters do encode information, the letter C in the acronym does not stand for code.
• Colour: MICR emphasises magnetic ink rather than colour; the technology relies on magnetism, not on visual colour information.
• Computer: Recognition is performed by computers, but the C in MICR does not mean computer.
• Cheque: MICR is used on cheques, but the word cheque is not part of the expansion.

Common Pitfalls:
Students sometimes mix up the words code and character because they know that MICR encodes bank details. They may also guess cheque because the acronym is associated heavily with cheque processing. To avoid these traps, remember the exact full form as Magnetic Ink Character Recognition and mentally align each word with its letter in the acronym. Practising expansions of common banking and computer acronyms makes such questions quick and accurate to answer in exams.

Final Answer:
In MICR, the letter C stands for Character.