Validate Bank Account (Penniless)

This page gives you an overview of the penniless 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 API allows you to automatically validate a bank account without a penny drop (INR 1) transaction. Decentro recommends using this API 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.
  • Super-fast validation: get your response in near-real-time on most of the major banks in India.

Decentro can validate accounts via penniless or a penny-drop to suit your business requirements. We also offer a hybrid model, where you can let us select the method of verification!

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.
  • Validation Type: The type must be selected as "penniless" in the validate account API