NPCI launches new facility of PAN-Bank account linking on Income Tax portal, Know the benefits

PAN-Bank Account Link- National Payments Corporation of India (NPCI) has introduced a new system. This new facility is related to PAN and bank account validation on the income tax e-filing website. This facility is going to be very helpful for taxpayers. Now they will not have to wait long for refund after filing tax return. With its help, PAN-bank account link verification will be done quickly on the e-filing website.

A letter from NPCI states that its target is to facilitate real-time verification of PAN details, bank account status and identity of account holders directly from the Core Banking System (CBS) of banks. The new facility has been announced in a circular dated June 17, 2025.

How does this system work?

The circular states that NPCI has now introduced a new PAN and bank account verification API, which is specially designed for government departments. This API allows real-time verification of PAN details, bank account status and name of account holders directly from the bank’s core banking system. It verifies PAN and bank account details in real time and processes taxpayers’ refunds quickly.

This facility will enable faster and error-free processing of income tax refunds and direct benefit transfers, thereby verifying details instantly, taking less time and reducing the risk of fraud. However, banks will have to upgrade their systems to comply with NPCI’s secure API standards.

After this change by the banks, taxpayers will benefit from a faster, error-free refund process. This change by the bank will lead to system upgrades and challenges like potential cyber fraud risks. This change is part of an initiative to strengthen India’s digital payment ecosystem.

When does the refund come after filing the return?

The last date for filing income tax returns under assessment year 2025-26 is 15 September 2025. Refunds will be issued only for income tax returns filed by this date. According to Income Tax, if you file a tax return, it takes some time to process it. Often the tax refund is issued within 15 to 20 days.