Explanation:

First option is correct.

The MICR code, which is required for clearing of cheques is Magnetic Ink Character Recognition.
MICR (often pronounced micker) is used mainly by the banking industry. A benefit of MICR over other computer-readable information such as bar codes is that humans are able to read MICR. The two MICR fonts that are used worldwide are E-13B and CMC-7. These unique fonts are used to help computers recognize the characters and limit check fraud.