New Delhi: National Payments Corporation of India, i.e., NPCI, has started the facility of verifying PAN and bank accounts in real time on the income tax website. With this new system, taxpayers will get income tax refunds quickly and without any hassles. The system will verify the account by connecting directly to the core banking system of banks. A circular was issued on 17th June 2025, notifying the onset of the Bank-PAN Link facility.
NPCI has launched a new API for government departments that will allow checking PAN details, bank account status, and account holder’s name directly from the bank’s system. This will make checking taxpayers’ data faster, easier and more accurate. All member banks have been instructed to implement it on a priority basis.
As per an ET report, the facility will make income tax refunds and direct benefit transfers (DBT) faster and more accurate. The delays caused by incorrect information or duplicate accounts will now be reduced. Additionally, the possibility of fraud will get reduced, and the reliability of the system will get increased.
In order to implement the new system, banks will have to update their systems as per the safety standards of NPCI. Although it can create some technical challenges in the beginning, it will strengthen the digital system of the country. The step is another stronger stride towards the Digital India Mission.
