NPCI Introduces Real-Time PAN-Bank Account Linking On Income Tax Portal; Details Here
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NPCI has directed banks to enable real-time PAN and bank account validation for the income tax e-filing portal using a dedicated API to enhance verification speed and accuracy.
The National Payments Corporation of India (NPCI) has directed all member banks to enable real-time PAN and bank account validation for the income tax department's e-filing portal.
According to a circular issued by NPCI, government departments will now be able to use a dedicated API service to verify key customer details such as PAN status, account validation, and account holder name directly through banks' Core Banking Systems (CBS). This step is expected to enhance the speed and accuracy of identity verification for tax and subsidy-related processes.
'This API will be used by government departments to verify the customer account details like PAN validation/Account Status Validation/Account holder name validation from their bank CBS," the circular noted.
Banks Asked to Prioritise Integration
All NPCI member banks have been advised to treat the implementation as a priority task, given that the service is being extended to the Government of India.
'As this is a service provided to the Government of India all the member banks are advised to necessary steps for implementation on priority," the NPCI added.
Technical specifications and guidelines for the API integration will be shared separately with the banks to help them align with the required systems.
NPCI also clarified that the circular can be shared internally by banks and financial institutions to ensure all stakeholders are informed.
'Technical specifications and comprehensive integration guidelines for the NACH PAN & Account Verification API shall be shared separately with the banks," it added.
Why This Matters
This integration will make processes like income tax refunds, direct benefit transfers, and other financial verifications faster and more reliable by removing delays and errors caused by manual or outdated systems.
It also comes at a time when the government is pushing for increased use of API-based real-time data exchange to boost governance and financial inclusion.
For any questions related to the implementation, NPCI has requested banks to use the CRM Tracker system.
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