Banking terms beginning with M

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MICR stands for Magnetic Ink Character Recognition. MICR Code comprises nine digits given on the white strip in the lower part of the cheque on the right side of the cheque number. This is a unique code and no two bank branches can have the same set of this code in the nation. It facilitates the process of cheque clearance. The MICR Code is different from the IFCS code, that is mentioned on every cheque. This code number is needed in case of RTGS / NEFT transaction.


A savings account holder needs to keep a minimum balance in his/her account on monthly or quarterly basis, as specified by the banks. In case of private banks, the person may have to maintain higher balance than that of any public sector bank. The public sector banks can ask a person to maintain a balance of ` 500 to ` 1000. However, in private sector banks, the minimum limit for the quarterly balance begins from ` 5,000.


The moratorium period can be called a repayment holiday for loan. If an individual wants to secure disbursement of loan, but he doesn't have EMI or Pre-EMI provision, he is provided with an option to dish out some amount, as stated in the bank policy. The moratorium period is contained in the maximum repayment period. An individual has to pay interest rates during this period.