Penny drop is a type of bank account verification used to verify the legitimacy of a beneficiary bank account that can be achieved by making a nominal deposit of INR 1. This process confirms the bank details beneficiary account holder’s name, and the account holder’s name and determines whether the associated account is active.

Pennyless verification is a type of BAV used to verify the legitimacy of a beneficiary bank account that can be achieved “without” depositing INR 1. This process confirms the bank details, beneficiary, and account holder name and effectively determines whether the associated account is active or deactivated.

Auto-routing is a mechanism used to authenticate the bank account details of the beneficiary to verify bank account details by switching between penny-less and penny-drop based on customer bank support.

Reverse penny drop verification is a validation technique wherein the user transfers a micro-deposit of 1 rupee from the provided link. The client will get details of the name, account number, IDFC code, and mobile number. The added advantage of using this is that API is the UPI payment link that will expire in 10 minutes, adding a layer of authentication to fraud in fraudstances.

The client has to enter their email ID and upload an Excel/CSV file with the bank account details such as the bank account number, name, name match score, IFSC code, the bank account status, and complete audit trail.

Bank account verification is a faster and more convenient beneficiary identity verification process, providing an instant check for the beneficiary’s account details, reducing fraud instances, and simplifying the verification process, delivering a seamless customer experience.

With Signzy, it takes less than 3 seconds to verify bank accounts either single bulk-uploaded.

If your business deals with multiple bank accounts and requires online transactions, payment payouts, etc., bank account verification is an effective method to reduce fraud and faster onboarding, therefore simplifying the beneficiary’s identity verification process.

Yes, using UPI ID fetch, clients can effortlessly verify a bank account number, IFSC code, and name, with a complete audit trail of the beneficiary, without doing multiple transactions.

Penny drop is a type of bank account verification used to verify the legitimacy of a beneficiary bank account that can be achieved by making a nominal deposit of INR 1. This process confirms the bank details beneficiary account holder’s name, and the account holder’s name and determines whether the associated account is active.

The Pension Fund Regulatory and Development Authority (PFRDA) has made the “Penny Drop Verification” mandatory for exiting or withdrawing funds from the National Pension System (NPS), as well as amending the subscriber’s bank account details.

The penny drop service is extensively utilized across various sectors, including banking, fintech, and payment gateways, to validate account details during customer onboarding, loan disbursements, vendor payments, and KYC processes. Its application ensures the accuracy of account information and helps prevent fraudulent activities. However, these sectors are switching to pennly less verification for faster customer onboarding and enhanced customer experience.

Using Signzy BAV, you don’t have to worry about anything. We have the highest success rate in the industry and 99.9% uptime for faster execution of verified bank account details.

Yes, you can easily integrate UPI VPA Fetch API into your existing workflows. Signzy offers detailed integration guides and SDKs to help you seamlessly incorporate the verification service into your existing systems.

Yes, we have built comprehensive API documentation for developers to easily understand the complex processes with integration code, samples, and additional support teams for queries during integration.

Read API Documentation

Yes, bank verification processes like Penny Drop are regulatory requirements to comply with Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations imposed by RBI. These measures help prevent fraud and ensure the accuracy of financial transactions.

To determine the accurate reason for a failed verification, Signzy provides account details for beneficiary banks and retrieves the status of accounts as:

Invalid Account Number: The provided account number does not exist or is incorrect.

Inactive Account: The account is closed or inactive.

Frozen: The account is on hold due to a fraud instance or regulatory compliance issues.

Closed: The account does not exist with the bank anymore