Thursday 12 January 2023

Independent Bank Account Verification & Name/PAN Matching for enhanced due diligence using PRAN-PAN- VPA(UPI) using NPCI Framework. PFRDA/2023/03/Fintech/01 , Jan 12, 2023


PFRDA/2023/03/Fintech/01            Jan 12, 2023   



All stakeholders under NPS    

Subject:  Independent Bank Account Verification & Name/PAN Matching for enhanced due diligence using PRAN-PAN- VPA(UPI) using NPCI Framework 

PFRDA has enabled robust technological interventions & continuous System level enhancements for discerning outcome through its Central Record Keeping Agencies (CRA) to provide a safe, secure and seamless processing of various Subscribers' service requests. 

2.  Instant Bank Acct Verification through Penny Drop enabled Vide Circular No. PFRDA/2021/21/SUP-NPST/2 Dt July 20, 2021 for the benefit of Subscribers and Stakeholders. The process had significantly reduced the returns of funds due to incorrect Bank Acct details, improved the turnaround time of processing and served as an additional due diligence mechanism to verify credentials of beneficiaries while processing their withdrawal claims. 

3. As part of Azadi Ka Amrit Mahotsav (AKAM) and to commemorate 75 years of India's Independence, PFRDA is pleased to introduce an advanced mode of Bank Acct Verification of the Subscribers (PAN-PRAN- VPA(UPI)) with elegant features where the joint holder details, PAN and UPI Ids are verified through NPCI and matched with Permanent Retirement Acct Number (PRAN). 

4. The feature is currently offered by CAMS CRA for its associated Subscribers. PFRDA encourages all CRAs and other intermediaries to integrate the Digital Journey of Subscriber with emerging technology like PAN-PRAN- VPA(UPI) verification thus provided by NPCI. 

5. The indicative benefits of PAN-PRAN- VPA(UPI) are as follows: - Error elimination in Pay out process - Binary & Simplified NPCI's response viz Active/Inactive simplifies the due diligence process vis a vis the earlier penny-drop framework which is dependent on fuzzy logic of name matching. - Matching of PAN seeded in PRAN and Bank Acct - Successful & timely Processing of withdrawal request of Subscriber who is the joint holder in Bank Acct. 

6. The work flow for PAN-PRAN- VPA (UPI) provided at Annexure for ready reference.  

This circular is available at PFRDA's website ( under the Regulatory framework in "Circular" section.  

Yours sincerely,   

Digitally signed by 


Chief General Manager

Bank Account Verification & Name/PAN Matching using PAN-PRAN- VPA (UPI) using NPCI Framework  

1. PAN and VPA (UPI) rides on the NPCI network and PAN linkage with Bank accounts. 

2. User PAN + Account number + IFSC (Bank code of the Bank mentioned by the Subscriber) are sent as request to NPCI to check if the Account number is linked with PAN in the Bank. 

3. If account number & PAN is linked in the bank, NPCI provides the return response as Y along with account holder name in bank. It also returns the UPI ID (if present), account type, status of bank account (whether Active/Inactive). 

4. If account number & PAN is not linked in the bank, then NPCI provides the return response as N with no details of the subscriber 

5. As this process returns value in binary (active/inactive), it is powerful than the penny-drop process which is dependent on fuzzy logic of name matching. 

6. MFs, Insurance Industry and NBFCs extensively uses the facility for on- boarding and change of Bank mandates. This facility is used by MFs for to verify third party investment. 

7. Advantages of using the Bank Account authentication using PAN and VPA (UPI) are as follows: a. Fast and prompt response. 

   b. Works even when the Subscriber is the second or third holder of the account (penny drop mechanism returns only the first holder name). 

   c. Eliminating of issues arising out of longer names as penny-drop process sometimes returns incomplete / curtailed names. 

   d. Easier and more logical approach than penny-drop which uses fuzzy logic of name matching. 

8. Challenge: Reason of PRAN – PAN - UPI rejection is on account of customer PAN not updated in the bank’s records/ invalid PAN in Bank record.  


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