NPCI Enables Real-Time PAN-Bank Account Linking On Income Tax Portal; Check Benefits For Taxpayers | Personal Finance News
Real-Time PAN-Bank Account Linking: The National Payments Corporation of India (NPCI) has rolled out a new facility regarding a PAN and bank account validation on the Income Tax Department’s e-filing portal. In a move to streamline the verification process, NPCI has ordered to all member banks to enable real-time PAN and bank account validation for this platform.
As per an official circular, government departments will now have access to a dedicated API service that allows them to verify crucial customer details—such as PAN status, bank account validation, and the account holder’s name directly through the banks’ Core Banking Systems (CBS). Meanwhile, the NPCI has also urged all member banks to prioritize the implementation of this service, which is being offered to the Government of India.
What Is API And How It Works
An API is a tool that helps two systems connect and share information. In this case, it acts as a secure link between the government’s tax platforms and a bank’s internal system. When a user tries to validate their PAN or link a bank account on the income tax website, the API sends a quick request to the bank’s Core Banking System (CBS) to check: PAN details, Account holder’s name and Account status (Active, Inactive, or Closed). This automated process replaces manual checks, making validation faster, more accurate, and secure.
Real-time PAN And Bank Account Validation: Benefits To Taxpayers
The use of APIs in PAN and bank account validation offers several key benefits. It enables faster linking of PAN with bank accounts, reducing the time taken for verification. By automating the process, it also helps minimize manual errors that can occur during data entry or offline checks. This leads to quicker processing of tax refunds, benefiting taxpayers directly. Adding further, the secure nature of API-based communication improves data security and builds greater trust in the system.
