What is Bank Account Verification?
Financial institutions conduct a customer identification and due diligence process to verify the authenticity, ownership, and details of a customer's bank account to ensure regulatory compliance and reduce fraudulent activities. It verifies the authenticity of the customer’s bank account but also checks if the mentioned account is operative or not.
What do you get?
Digio bank account verification APIs are easy to use, and it can allow financial institutions including large banks and NBFCs to promptly and securely validate the bank account information of customers. Digio supports 4 modes for bank account verification, namely:
- Penny-drop: It is a form of bank account validation in which a penny, usually INR 1 is deposited in bank A/C. It verifies the authenticity and status of the customer’s bank account. In Penny-drop custom, a maximum of INR 2 is deposited in user bank A/C and the user has to enter the amount deposited in their bank account.
- Penny-less: It retrieves the name of a bank a/c holder and status of the account for an a/c without the need of nominal transaction.
- Reverse Penny-drop: Customer pays a penny to client and then client reverse the amount back to customer’s bank account.
- VPA verification: VPA verification is used to find customer names against VPA in UPI and verify the status of the account.
Bulk Bank Account Verification can be done using excel upload.
Cheque based bank account verification can also be done in which users upload a cheque image and using OCR, user details are extracted. These details will be used for verification as per the bank account verification mode selected.
IFSC verification API can be used to verify against IFSC master maintained by RBI and get bank and branch details along with transfer modes supported.