With Penny Drop Verification, give your users the option to verify bank account details by launching a UPI app or entering bank account details directly. 600+ banks covered.
| What you need | Details |
|---|---|
| Verification speed | 5 seconds |
| Success rate | 99% |
| Bank coverage | 600+ banks in India |
| Reverse Penny Drop | The business deposits a nominal amount (usually ₹1) into the user's bank account. |
| Standard Penny Drop | The user transfers a nominal amount (usually ₹1) to the business via a UPI intent link, QR code, or collect request. |
| API documentation | https://www.cashfree.com/docs/api-reference/vrs/v2/upi-penny-drop/create-upi-penny-drop-request |
| Bulk verification | Supported via webhooks |
Use the API to let your users verify their bank account at the time of onboarding KYC or before receiving money transfers. Know if the account is active, the name as per bank records, and supported transfer modes.
Discover a seamless way to verify user identity. Eliminate the need for manual penny drop — users can verify bank accounts by launching a UPI app on their phone or by entering bank account details directly.
Elevate user experience by effortlessly verifying bank account information. Eliminate frustrating drop-offs and unlock a higher verification completion rate.
More than 60% of bank transfers fail due to incorrect account details. With verified account details, avoid reversals and transfers to incorrect beneficiaries.
Verify user bank account details across a wide range of banks in India — including major public sector, private sector, co-operative, and regional rural banks.
| Factor | Penny Drop Verification | Reverse Penny Drop Verification |
|---|---|---|
| Who initiates | Business initiates | User initiates via UPI app |
| Core mechanism | The business deposits a nominal amount (usually ₹1) into the user's bank account. | The user transfers a nominal amount (usually ₹1) to the business via a UPI intent link, QR code, or collect request. |
| Infrastructure Used | Bank-to-bank transfer rails like IMPS or NEFT. | The UPI (Unified Payments Interface) ecosystem. |
| User involvement | Passive | Needs to authenticate and complete the transaction) |
| Fund Leakage & Cost | The business incurs the cost of the ₹1 deposited across thousands of users, leading to minor capital leakage. | Zero fund leakage for the business. The ₹1 paid by the user is automatically and instantly refunded back to their account. |
| Best for | Vendor/beneficiary validation before payouts | User onboarding KYC in fintech, lending, insurance apps |
| Data returned | Account active status, name at bank, failure reason | Name at bank, account number, UPI ID |
Provide your user the flexibility to verify their bank account details by launching any installed UPI app — and know user details like name at bank and account number.
The API creates a 1 Rupee reverse penny drop request. The amount is auto-credited after successful verification.
Verify if a bank account exists, match the name provided by the beneficiary with the name at the bank, and minimise failed or reversed transfers. Know the accurate reason for verification failure.
Note: After successful verification, there is no auto-credit of the amount used as a penny drop to the beneficiary account.
Provide users the flexibility to verify their bank account details by launching a UPI app or entering bank account details. The amount is auto-credited after successful verification.
The most exhaustive list of IFSC codes, updated weekly. Verify whether an IFSC is valid, and get the bank name and branch it belongs to.
Simplest and easiest way to integrate.
{
"signature": "signature",
"event_type": "RPD_BANK_ACCOUNT_VERIFICATION_SUCCESS",
"event_time": "2023-07-19 10:46:16",
"version": "v1",
"data": {
"bank_account": "026291800001191",
"ifsc": "YESB0000262",
"upi": "",
"name_at_bank": "BHARATHTEST GKUMARUT",
"verification_id": "91",
"ref_id": "49",
"utr": "49",
"status": "SUCCESS",
"name_match_score": "",
"name_match_result": "",
"added_on": "2023-07-18T16:27:10+05:30",
"processed_on": "2023-07-19 10:46:16",
"penny_collected_on": "2022-10-27 12:40:09.530"
}
}
Penny Drop Verification is a bank account verification method where a small amount is transferred to a bank account to confirm it is active and that the account holder's name matches the records at the bank. It helps businesses minimise failed transfers and avoid disbursing money to incorrect or inactive accounts.
Cashfree's Penny Drop Verification also returns the accurate reason for verification failure — giving businesses clear visibility when an account cannot be verified.
Note: After successful Penny Drop Verification, the amount used is not auto-credited back to the beneficiary account.
Reverse Penny Drop Verification is an advanced method where the user initiates the verification themselves by launching any installed UPI app on their phone or entering their bank account details. The API creates a 1 Rupee reverse penny drop request, and the amount is automatically credited back to the user after successful verification.
The key difference from standard Penny Drop: in Reverse Penny Drop, the amount is auto-reversed, and the user actively participates — making it a more seamless experience with higher completion rates.
More than 60% of bank transfers fail due to incorrect account details. Verifying bank accounts before onboarding or before sending money significantly reduces failed transfers, reversals, and the operational overhead of resolving them. It also confirms the account holder's name at the bank — reducing fraud risk at onboarding.
Cashfree's Penny Drop Verification completes in 5 seconds, with a 99% success rate and coverage across 600+ banks in India.
Cashfree's Penny Drop Verification covers 600+ banks in India — including major public sector, private sector, co-operative, and regional rural banks.
Use Penny Drop Verification when you want to validate a beneficiary's bank account before sending money — for example, during vendor onboarding or before loan disbursals. The business initiates the verification.
Use Reverse Penny Drop Verification when you want the user to self-verify their bank account during onboarding KYC — for example, in lending, fintech, or insurance apps. The user launches their UPI app or enters bank account details, and the amount is auto-credited after verification.
IFSC Verification lets you confirm whether an IFSC code is valid and retrieve the associated bank name and branch. Cashfree maintains the most exhaustive list of IFSC codes, updated weekly.
Learn more about IFSC Verification →
Cashfree provides highly reliable and secure APIs with official libraries for multiple programming languages. You can integrate the account verification flow directly into your product and use webhooks to receive real-time notifications on single or bulk verification status.
Yes. Using webhooks, you can receive real-time status updates on both single and bulk verification requests — enabling automated, high-volume bank account verification workflows.
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