What is penny drop or penniless verification?

Penny drop and penniless verification are methods used to accurately validate your bank account details during the account verification process. It helps to quickly verify if the account is active and confirms the account holder’s name as per bank records.

• Penny drop verification: A small amount (₹1) is deposited into your business bank account to confirm the account number and retrieve the account holder’s name.
• Penniless verification: This method verifies your business bank account details without transferring any amount. It verifies the provided bank account number, account holder’s name, and IFSC code against the official bank records to confirm the account’s validity.

Both verification methods are commonly used when onboarding merchants to ensure accurate bank details, reduce payout failures, and minimise fraud risks. If we’re unable to verify your bank account using these methods, we may request additional documents, such as a bank statement or a cancelled cheque, to complete the verification process.