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Interframe coding is used for removal of temporal redundancy in video data and motion compensation plays a very significant role in the interframe coding of such data. Motion compensation based on block matching technique generally uses the criterion of either minimum Mean Square Error (MSE)/ Mean Absolute Difference (MAD) value to find the suitable motion vector. Vector Matching Criterion (VMC) is another such method for motion compensation in the literature. In this manuscript, a new matching criterion for block based motion compensation is being proposed and compared with other existing techniques. The experimental results show that the proposed criterion of block matching gives excellent results in comparison to the existing criterion of block matching techniques.