Pennydrop
Penny Drop (also called Bank Account Verification) is a process where a small amount (e.g., ₹1) is transferred to a customer’s bank account to:
• Verify that the bank account is valid and active.
• Confirm the ownership of the bank account by matching the account holder name returned by the bank.
This method is widely used in financial services, payments, lending, and KYC processes to ensure fraud prevention
How Penny Drop Works
- Customer provides bank details (Account Number, IFSC).
- System initiates a small credit (e.g., ₹1).
- Bank validates account and returns the account holder’s name.
- System matches name with provided KYC (PAN, Aadhaar, etc.).
- If match → Account verified. ✓
If mismatch → Flagged for manual verification. ✗