Real-Time Bank Account Verification to Speed Up Tax Refunds
The National Payments Corporation of India (NPCI) has launched a new feature enabling real-time verification of PAN and bank account details on the Income Tax portal. The move is aimed at ensuring faster, error-free processing of tax refunds and government benefit transfers.
According to officials, the facility will allow taxpayers to instantly validate their account information, reducing delays and minimizing the risk of refunds being credited to incorrect accounts.
NPCI recently issued a circular announcing the system, which has been specially designed for integration with government departments. The process links core banking systems with a secure verification mechanism that instantly checks account status and ownership before processing transactions.
Key Benefits of the New System
- Instant Real-Time Verification: PAN and bank accounts can now be validated in real time.
- Faster Refunds: The refund process will become quicker and more streamlined.
- Direct Benefit Transfer Efficiency: Government subsidies and payments will reliably reach the correct beneficiaries.
- Fraud Prevention: The system will significantly reduce the potential for fraud and identity misuse.
Officials explained that all member banks have been instructed to implement the system on a priority basis. Banks may also need to upgrade their software in line with NPCI’s secure protocols to ensure seamless adoption.
The government emphasized that this change is part of broader reforms to improve taxpayer services and enhance the transparency of financial transactions.
