Penny-Drop Bank Account Verification API offers an instant verification of active savings and current bank account, given account number and IFSC code. This API can be used to filter out inactive or invalid bank accounts before direct deposits or payouts (loans, transfers, micro lending, EMI, credits) to individuals and vendors.
In Penny-Drop Bank Account Verification the bank sends a small amount, usually one penny, to the account holder's bank account. The account holder is then required to confirm the amount deposited to verify their ownership of the account. This method is often used as a security measure when linking bank accounts to third-party services, such as payment processors or money transfer services. It helps to prevent fraudulent activity by confirming that the person trying to access the account is the rightful owner.
Penny-Drop Bank account verification uses the IMPS network. Verification will return the account holder name for any valid IFSC of the bank where the account exists.
If client wishes to get response codes received from NPCI of the transaction, an additional parameter "extended_data" can be added in request body.
Definition
Extended Data - Extended Data is an additional data fields that we get along with full name in response. there can be only 2 possible values for it, either 1 or 0.
Scenarios for Extended data-
1- When you set it as true Bank Account Verification API gives you two additional data fields, NPCI back office response code and NPCI Online response code. These response codes are populated by the beneficiary bank to know the status of the transaction.
0- When you set it as false Bank Account Verification API gives you only beneficiary name in response.
NPCI Back Office Response Code : NPCI back office response code is a code that is generated by NPCI's back-end systems in response to a transaction request or query received from a member bank or a payment service provider.
NPCI Online Response Code : Online response code is a code that is generated by NPCI's systems in real-time in response to a transaction request made by a user or a merchant.