BTL 789 - Penny Drop Verification

 

The Banking Tutor’s Lessons

BTL 789                                                                   30-05-2025

Penny Drop Verification 

Penny drop verification is a method used in banking and finance to verify the accuracy of bank account details by depositing a small amount of money, typically ₹1, into the account. 

This process helps ensure that the account number, account holder's name, and IFSC code are correct, and that the account is active. 

The user enters their bank account details, including the account number, account holder's name, and IFSC code. 

A small amount (e.g., ₹1) is deposited into the provided account. 

The bank confirms the transaction and verifies that the account details match the information provided. 

If the details match, the verification is successful, and the system confirms the account's validity. 

This method helps businesses and financial institutions verify the authenticity of customer bank accounts before onboarding them or making payments, reducing the risk of fraud and payment failures. 

Sekhar Pariti

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