Validate Bank Account

Overview

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.

Decentro provides the below capabilities to check if a bank account is valid or invalid.

• Penny drop: this verification mode allows any platform to use Decentro's capability to validate a bank account by doing a INR 1.00 payout to the beneficiary. This capability can be used to validate any bank account which has activated IMPS at their end is available with almost all banks in India.
• Penniless: this verification mode allows any platform to use Decentro's capability to validate a bank account without any fund transfer to the beneficiary. This capability can be used to validate any bank account which has activated IMPS at their end and is available with most of the leading banks in India.

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We also offer a "Hybrid" model, where you can let us select the method of verification based on the mode supported by the beneficiary bank.

• Bulk Validate Bank Account: this functionality allows any platform to use Decentro's capability to validate bank account in bulk, via any validation mode. This capability can be used to validate multiple bank accounts through a simple excel sheet uploaded via the dedicated API or our dashboard.

Decentro's stack has 3 core APIs:

• Validate bank account (V3): this API enables real-time bank account verification through a multi-banking architecture. If verification fails with one provider, the system automatically retries with alternate providers — ensuring higher success rates and eliminating manual retries.
• Validate bank account (V2): this API allows a platform to undertake a penny drop or a penniless verification real-time or use it without integration.
• Bulk Validate Bank Account: this API allows a platform to undertake a penny drop or a penniless verification in bulk without having to integrate. Please Note: V3 support for this functionality is under development.

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Simulation Data

Validate bank account scenarios can be simulated basis of the test data here.

Decentro's platform is designed in a way that any platform that uses its payouts capabilities can use the bank account validation capabilities with the same commissions or funds. Please reach out to us at [email protected] if you are our existing customer.