What is the full form of MICR in the context of banking?

Magnetic Ink Character Recognition

The correct answer is Option (4) - Magnetic Ink Character Recognition

MICR (Magnetic Ink Character Recognition). A MICR code is a 9-digit code that uniquely identifies a bank and a branch participating in an Electronic Clearing System. First 3 digit= city code, Middle 3 digit = bank code, Last 3 digit = branch code. One can locate the MICR code at the bottom of a cheque leaf, next to the cheque number. It is also normally printed on the first page of a bank savings account passbook.