Overview
The IMPS API could be used to do a nominal value transaction of Rs 1/- ( referred as Penny drop), which in turn can be used to validate 2 aspects before making payments into the new beneficiary account. 1. It fetches the name of the account in the other Bank 2. It also gives a confirmation whether the fund transfer to that account will be successful or not (we can rule out a credit-freeze scenario in that account)
Remitter should provide the Account Number and IFSC details of the beneficiary whose account needs to be validated. This API will further initiate the transaction to a beneficiary account with a restricted amount of Rs.1-/ through IMPS Fund Transfer. The beneficiary account holder's name will be returned in the response once the transaction gets succeeded. If in case the transaction fails due to any reason, the API will return an appropriate response along with the reason code.