Penny Drop Verification (India)

Penny drop verification confirms Indian bank account ownership by sending a nominal credit (often ₹1) and reading back the beneficiary name from the receiving bank. The name is then matched (exact/normalized/fuzzy) to the customer’s declared name, establishing ownership and account activity without full statement access.It’s widely used by fintechs, brokers, lenders, and payroll/remittance platforms as a quick, low-cost verification during onboarding or payouts. Compared to microdeposits, penny drop leverages local rails (IMPS/NEFT/UPI) for faster resolution; compared to IAV APIs, it requires fewer permissions but provides less data. Institutions log UTRs and responses for audit trails and re-run checks upon changes to bank details.