Third-Party Validation Feature for BFSI Sector Businesses


What is Third Party Validation? Why is it important? 

Merchants in securities, broking and mutual funds operating in the BFSI (Banking, Financial Services and Insurance) sector are prone to cases of cybercrimes, asset appropriation, identity thefts, money laundering, accounting frauds etc. 

In order to reduce the risk, the Securities and Exchange Board of India (SEBI) has laid some guidelines for these merchants.

As per the SEBI guidelines, all payments to such businesses must be made by their customers exclusively from the pre-registered bank accounts. 

The pre-registered bank account is the bank account, the details of which the customer would have shared at the time of enrollment for the schemes offered by businesses in these sectors.

Introducing Third-Party Validation feature by Cashfree

Cashfree now supports Third-Party Validation on Payment Gateway. Using Cashfree’s Third-Party Validation feature, businesses can now comply with the above mentioned SEBI regulatory guidelines in a manner such that the customers make payments only from their registered bank accounts. Some of the primary use cases of Third-Party Validation feature include


  • BFSI sector - Brokers and other online businesses can now sign up for Cashfree services and take advantage of our Third-Party Validation solution to transact online with their customers securely and conveniently in real-time.

  • Loan repayments - Merchants operating in loan repayments sector can use Third-Party Validation to ensure there are no discrepancies while repayments in terms of dispute cases.


When the customer transacts with the merchant Cashfree payment gateway (with TVP feature enabled), his bank account number or CRN(customer relationship number) is mapped in such a way so as to lock the transaction to ensure that the payment is processed only from his registered bank account.


TPV feature is in compliance with SEBI guidelines and serves as a one-stop solution for all the merchants operating under the BFSI sector to meet the compliance requirements and start transacting online with their customers by availing the TPV integration of all leading banks.


When you enable TVP feature on your Cashfree Payment Gateway, Cashfree matches the account number provided by the customer at the time of registration against the account number used to perform the transaction.

If the customer uses a non registered account number, Cashfree marks the transaction as FAILED and shows the appropriate reason for failure.

To know more about the feature and how it can help your business, contact your Cashfree Account manager. If you are new to Cashfree, please contact us here. We would love to talk to you.

Did this answer your question?