PFRDA: 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
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 whileprocessing
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 readyreference.
This circular is available at PFRDA’s website (www.pfrda.org.in) under the Regulatory
framework in “Circular” section.
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 numberis 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 theUPI
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 fuzzylogic
of name matching.
8. Challenge: Reason of PRAN – PAN – UPI rejection is on account of customerPAN
not updated in the bank’s records/ invalid PAN in Bank record.
