PAN-bank link on income tax website: NPCI enables real-time verification via API; faster refunds, fewer errors expected
The national payments corporation of India, NPCI, has introduced a new facility for real-time PAN and bank account validation on the Income Tax department’s e-filing website. Announced in a circular dated June 17, 2025, the initiative aims to streamline the verification process for taxpayers linking their PAN with their bank accounts.The facility, launched through a newly developed API, is designed for use by government departments to directly verify PAN details, bank account status, and the account holder’s name from the Core Banking System (CBS) of member banks.
According to NPCI, the move is intended to simplify the verification process and ensure secure, real-time validation. All member banks have been advised to implement the necessary changes on a priority basis to support this service for the Government of India.According to an ET report, legal expert Utkarsh Bhatnagar, partner at Cyril Amarchand Mangaldas, said “This will enable quicker and real time validation of PAN and bank account details of taxpayers accessing the Income Tax website.”He added that this would help in faster and error-free processing of income tax refunds and direct benefit transfers by eliminating delays and minimising fraud.While the facility is expected to improve efficiency and accuracy in taxpayer services, it also requires banks to upgrade their systems to meet NPCI’s secure API standards. This could present operational and cybersecurity challenges in the initial implementation phase.The new validation feature aligns with NPCI’s ongoing efforts to strengthen the country’s digital payment and governance infrastructure through improved inter-agency collaboration and technological innovation.
