PAN-Bank Account Linking: NPCI has launched a facility related to verification of PAN and bank account on income tax e-filing. This facility helps taxpayers in the process of linking PAN and bank account on the income tax e-filing website.
Real Time PAN-Bank Account Linking: If your PAN and bank account are still not linked, then this news is useful for you. Taxpayers are also going to benefit from this news. Through this, your income tax refund will be credited to the account sooner than before. Till now, it used to take 15 to 20 days to process the tax refund. But now its time period is expected to decrease. Actually, giving relief to the taxpayers, the government has started a new facility to link PAN and bank account.
NPCI started this facility
National Payments Corporation of India (NPCI) has started the facility related to verification of PAN and bank account on income tax e-filing. This facility helps taxpayers in the process of linking PAN and bank account on the income tax e-filing website. In a circular issued by NPCI, it was said that its purpose is to verify PAN details, bank account status and account holder’s identity in real time directly from the Core Banking System (CBS) of banks. This facility was announced in a circular issued on 17 June 2025.
Circular on linking PAN and bank account
Taking this initiative forward, NPCI has introduced a new PAN and bank account verification API especially for government departments. This API will help in verifying PAN details, bank account status and account holder name in real time directly from the Core Banking System (CBS) of banks.
CBS will be used for verification
According to the circular of NPCI dated 17 June 2025, this API will be used by government departments for verification of customer account details like PAN verification / account status verification / account holder name from their bank CBS (Core Banking System). This is a service provided to the Government of India, so all members have been advised to take necessary steps to implement it on priority basis.
How will the new facility help in getting income tax refund quickly?
Experts say that the new facility will make the process of income tax refund and DBT faster and error-free by instantly verifying PAN and bank account details. This will reduce delays and reduce the risk of fraud. Banks will have to upgrade their systems to follow NPCI’s secure API standard, which may involve major operational changes. This will help taxpayers get faster and error-free refunds. This change will also reduce system upgrades and cyber security risks.
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