Validate Bank Account (Penny Drop)
This page gives you an overview of the penny drop based bank account validation capability of Decentro.
Decentro's validate bank account can be used for multiple use-cases.
- Pre-disbursement check: validate a bank account before disbursing funds or setting up a NACH mandate to the beneficiary to avoid any operational overheads or bad experience.
- Risk check: validate a bank account to check at the time of refunds or even payouts to ensure it belongs to them and avoid any misrepresentation.
- Account validation: validate a bank account and establish a relationship with a user on the platform to establish the source of funds in investment use-cases.
This capability allows you to automatically validate a bank account by doing a penny drop (INR 1) transaction. Decentro recommends using this capability before initiating a payout to a beneficiary to ensure the account is valid and belongs to the concerned individual/entity.
Below are some of the major benefits of using this capability.
- Real-time validation: get instant status of the bank account validation without having to verify offline.
- Account details: get to know whom the account belongs to and if its active.
- Widespread coverage: get access to almost all the banks in India who are on the IMPS rails.
Decentro can validate accounts via a penny-less verification as well to suit your business requirements. We also offer a hybrid model, where you can let us select the method of verification or you can choose to validate a bank account in bulk without having to run scripts.
Link to Validate Bank Account API
Decentro's validate bank account (penny drop) service works as below.
- Master virtual account: configure the master virtual account provided by Decentro to load the funds which will hold the amount to be transferred as well as commissions (optional) once you close the commercials.
- Account funding: fund the account through NEFT, RTGS or IMPS into the above virtual account for the amount you want basis your transaction volumes.
- Account validation: use the validate account API to validate bank accounts one at a time as an integration in your workflow.
Updated 2 months ago