New Delhi: To ease the process on the Income Tax e-filing portal, the National Payments Corporation of India (NPCI) introduced a real-time pan and bank account validating facility on June 17, 2025, which could make the taxation process of the portal easier and quicker, with better refunds and eased compliance on the part of the taxpayers.
The new Application Programming Interface (API) enables users to perform on-demand searches for PAN information, bank account statuses, and the identities of account holders directly from the bank’s Core Banking Systems (CBS). The circular created by NPCI instructed member banks to put in priority implementation since it would serve the Government of India. The API is a software interface that establishes a secure connection between the tax portal and bank systems, facilitating a rapid exchange of data.
The API will help the taxpayers get linked with their PAN and bank accounts faster, reduce manual errors, and receive tax refunds and payments faster. Most of the time, the e-filing portal updates the validation status within 10-12 working days, but this facility will significantly reduce the delays. The system also incorporates data security and reliability, significantly reducing the likelihood of fraud.
According to Utkarsh Bhatnagar, Partner, Cyril Amarchand Mangaldas, the new feature will facilitate faster, error-free generation of refunded amounts and direct benefit transfers and reduce delays by a large margin. To comply with the secure API requirements established by NPCI, banks will need to upgrade their systems; however, this process may be challenging initially but will prove efficient in the long run.
The initiative aligns with NPCI’s mission to strengthen the digital payment ecosystem in India. It strengthens the efforts of the Indian drive for effective digital governance by creating a secure, smooth experience for taxpayers by enabling cooperation between banks and other branches of the government.