An ICICI Bank account receiving a Re.1 IMPS credit is usually a Penny Drop Verification by a financial institution to confirm account accuracy, ownership, and active status before a larger fund transfer. This verification process uses a tiny deposit to validate the bank account number and IFSC code. You may also receive a confirmation SMS from the remitter with a transaction reference number.
What is a Penny Drop Verification?
- It’s a method used by financial institutions to verify bank account details.
- A small amount of money, like ₹1, is transferred to a specified account.
- This validates the account number, IFSC code, and that the account holder has access to it.
Why You Received It
- Account Verification: The institution sending the ₹1 needs to ensure that the bank account details provided are correct and the account is active before sending a larger sum.
- Fraud Prevention: This method helps prevent fraud by confirming account ownership and authenticity.
- Onboarding: Financial firms use it during the onboarding process for customers or partners to ensure accurate data entry.
What to Do
- Check for Confirmation: Look for a confirmation SMS from the remitter with a transaction reference number.
- Note the Transaction: Make a note of the transaction for your records.
- Wait for the Main Transfer: If this was a verification, the main payment is likely to follow.
If you did not request or expect this transaction, you should contact the institution that sent it or ICICI Bank’s customer care for clarification.
