Central Banking

Fed will have single MICR format in 2005

US - The Federal Reserve announced Wednesday 10 October that it will adopt a single standard for magnetic ink character recognition detail on checks by mid-2005.

A standard MICR data format is expected to aid in the conversion of paper to electronic payments, since one of the chief obstacles to conversion is a lack of uniform exchange standards.

"We need a set of standards that provide maximum opportunity for efficient interchange of check payments," said Patrick Barron, the first vice presiden