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 11 days ago