Bank Account Verification API

Bank account verification is a critical step in lending, payroll processing, insurance claims, and any workflow that involves fund disbursement. Sending money to the wrong account — whether due to data entry errors, fraudulent claims, or identity theft — results in financial losses, recovery complications, and regulatory scrutiny. digiverification 's Bank Account Verification API eliminates these risks by validating account ownership before any transaction.

Our API supports three verification methods: Penny Drop, Reverse Penny Drop, and UPI-based verification. Penny Drop verification deposits ₹1 into the provided bank account and retrieves the account holder's name from the bank's response. This confirms that the account exists, is active, and the holder's name can be matched against the expected beneficiary. It's the most reliable method for confirming account ownership.

Reverse Penny Drop works through UPI — the user initiates a ₹1 collection request from digiverification , and the bank's response confirms the account holder's name and account status. This method is faster and doesn't require a deposit, making it ideal for real-time verification during customer onboarding.

UPI-based verification validates the VPA (Virtual Payment Address) and retrieves the linked account holder's name. This is particularly useful for peer-to-peer payment platforms and apps where users transact via UPI IDs rather than account numbers.

For lending institutions, bank account verification is mandatory before loan disbursement. RBI guidelines require lenders to verify that the disbursement account belongs to the borrower. Our API automates this compliance requirement, reducing manual verification effort and speeding up the disbursement process.

Insurance companies use our API to verify claim settlement accounts, ensuring that payouts reach the rightful policyholder. Payroll processing companies verify employee bank accounts before the first salary transfer, preventing bounced transactions and payment delays.

The API also performs IFSC code validation and returns the bank name, branch details, and MICR code — providing complete account routing information in a single API call. It supports individual and bulk verification for enterprise use cases.