RakshaAI Verification Standards - How We Check Every Business, Layer by Layer
This page explains exactly how RakshaAI verifies business documents: which source systems are queried, what each source returns, how results are stored and how your data is protected.
Transparency is fundamental to a trust badge. Businesses deserve to know what we check before they apply, and consumers deserve to know what verified means before they trust a badge.
From Rs. 299/month - Badge in 2-3 business days - No document uploads
5 APIs
Official source checks
6th Check
RakshaAI fraud database
0
Documents stored
DPDP 2023
Privacy-aligned handling
Live Source Checks
Why We Use Live Source APIs - Not Document Uploads
RakshaAI does not ask applicants to upload GST certificates, Aadhaar cards or PAN cards. We verify against source systems and store only the outcome needed for badge display and renewal.
Document-Based Verification
A business uploads a static document. A verifier reads it, stores it and trusts that it has not been forged or become outdated.
API-Based Verification
RakshaAI queries the live source system. The result comes from the source database, and the badge links to a public verification page.
| Document-Based Approach | RakshaAI API-Based Approach |
|---|---|
| You upload a copy of your GST certificate | RakshaAI queries the live GSTN portal and receives the result from the source |
| Verifier reads and stores your document | Only the result is stored, such as Active or Not Active |
| Forged documents can bypass manual checks | A fake GSTIN fails a live GSTN check immediately |
| Certificate reflects one historical issue date | API result reflects current source data at verification or renewal |
| Consumers cannot independently check the claim | Every badge links to rakshaai.co/verify/[id] for one-click consumer verification |
Five Verification Layers
The Government and Regulated Source Checks Behind Every Badge
Each layer checks a different risk area: business registration, identity, tax identity, bank traceability and company status.
Layer 1
GST Verification via GSTN
GSTN portal
Checks GSTIN status, business name, return filing status, state and registration date.
Layer 2
Aadhaar KYC via UIDAI eKYC
UIDAI eKYC
Confirms identity ownership using OTP sent to the UIDAI-registered mobile number.
Layer 3
PAN Verification
NSDL + Income Tax
Confirms PAN validity, entity type, name linkage and PAN-Aadhaar linkage.
Layer 4
Bank Account Verification
RBI-regulated banking rails
Uses penny drop to confirm account existence, active status and name match.
Layer 5
Company Documents
MCA21
Applies to Pvt Ltd, LLP and OPC entities using CIN and company records.
Layer 1
GST Verification via GSTN Portal
GSTN maintains the official database of GST registrations in India. When a GSTIN is submitted, RakshaAI checks live source status and name consistency.
| Data Point Checked | What GSTN Returns | Pass Condition |
|---|---|---|
| GSTIN status | Active / Cancelled / Suspended / Migrated | GSTIN must be Active |
| Business name | Registered trade name as recorded on GSTN | Name must match the application |
| GST return filing status | Filed / Pending / Not Due | Required filings must be current |
| State and taxpayer category | State code and category such as Regular, Composition or SEZ | State must match the application |
| Date of registration | GST registration effective date | Confirms an actual registered business |
A common fake GST pattern is submitting another business's GSTIN. RakshaAI cross-checks the GSTN business name against the application, and a mismatch fails this layer.
Layer 2
Aadhaar KYC via UIDAI eKYC
UIDAI eKYC confirms applicant identity through OTP sent to the Aadhaar-registered mobile number. The full Aadhaar number is not retained after verification.
How the UIDAI eKYC process works
- 1Applicant enters Aadhaar number in the secure application flow.
- 2UIDAI sends an OTP to the mobile number registered with Aadhaar.
- 3Applicant enters the OTP and RakshaAI sends it to UIDAI eKYC for confirmation.
- 4UIDAI confirms whether the identity and OTP are valid.
- 5RakshaAI stores the verification result and masked Aadhaar only.
| What UIDAI Confirms | Meaning |
|---|---|
| Identity verification | Name, date of birth, gender and address are confirmed from UIDAI records. |
| Ownership verification | OTP proves the applicant controls the Aadhaar-registered mobile number. |
| Active status | Aadhaar must be active and usable for eKYC. |
| Mobile linkage | OTP must be delivered and verified on the UIDAI-registered mobile number. |
The OTP is sent to the mobile number registered with UIDAI, which can be different from the business phone number. Keep that SIM active during application.
Layer 3
PAN Verification via NSDL and Income Tax Department
PAN confirms the tax identity behind the business or owner. RakshaAI checks validity, entity type, name linkage and Aadhaar linkage where applicable.
| Check | Source | What Is Confirmed |
|---|---|---|
| PAN active status | NSDL | PAN is valid, active and not cancelled or suspended |
| Entity type | NSDL | PAN belongs to the correct entity type: Individual, Firm, Company or HUF |
| Name linkage | Income Tax records | Name on PAN matches the application |
| PAN-Aadhaar linkage | Income Tax portal | PAN is linked to Aadhaar where required |
PAN-Aadhaar linkage is mandatory for many applicants. If your linkage is pending, complete it on the Income Tax portal before applying.
Layer 4
Bank Account Verification via RBI-Regulated Penny Drop
Penny drop is the standard account verification method used across RBI-regulated fintech and payment systems. It verifies the actual bank account number and IFSC.
How penny drop works
RakshaAI sends a micro-transaction to the account number and IFSC provided. The bank response confirms the account exists, whether it is active and what account holder name is registered with the bank.
The micro-transaction is reversed or has zero net financial effect. The purpose is verification, not payment.
| Confirmation | What It Means |
|---|---|
| Bank account name match | The returned account holder name must match the business name, or the owner name for sole proprietors. |
| Account active status | The account must be operational and not dormant, frozen or closed. |
| IFSC validity | The IFSC must correspond to a real active bank branch. |
| Bank account, not UPI ID | This verifies account number and IFSC directly, not a VPA or UPI handle. |
Layer 5
Company Documents via MCA21 Portal
MCA21 applies to Private Limited companies, LLPs and OPCs. It confirms company existence, active status, registered office state and director details where applicable.
| Data Point | What MCA21 Returns | Pass Condition |
|---|---|---|
| Company status | Active / Strike Off / Under Liquidation / Under Process of Striking Off | Must be Active |
| Company name | Registered company name as recorded on MCA21 | Must match the application, including Pvt Ltd or LLP suffix |
| Date of incorporation | Incorporation date and certificate information | Confirms the company exists |
| Registered office state | Registered office state as on MCA21 | State should be consistent with the application |
| Director details | DINs and names of listed directors | Cross-checked where applicable against Aadhaar identity |
Layer 5 does not apply to sole proprietors and unregistered partnership firms. Those business types can receive a valid 4/5 High Trust Score when Layers 1-4 pass.
6th Parallel Check
RakshaAI Internal Fraud Cross-Check
Beyond source-system verification, RakshaAI checks every application against its own fraud intelligence database before issuing the badge.
What the Trust Engine checks
The RakshaAI Trust Engine cross-references business phone number, website URL and associated payment identifiers against scam reports, flagged entities and risk signals from the RakshaAI user base.
This is not shown as a labelled Layer 6 on the certificate because it is a fraud risk screen, not a government verification layer.
| Signal | Action |
|---|---|
| Phone number | Cross-checked against scam reports and flagged number intelligence. |
| Website URL | Checked against RakshaAI reports, blacklisted domains and suspicious website history. |
| UPI IDs | Compared with user-submitted fraud reports and internal risk signals. |
| Manual review | A fraud database hit triggers review within 24 hours instead of automatic rejection. |
Data Safety
What We Store, What We Do Not Store, and Why
RakshaAI stores the minimum required to display verification status, renew a badge and let consumers verify a business. We do not store original document uploads.
| Data Item | What We Store | Why |
|---|---|---|
| Aadhaar number | Not stored; purged after UIDAI OTP verification | UIDAI guidelines prohibit storing Aadhaar numbers. Masked display only. |
| PAN number | Encrypted verification status only | The readable PAN number is not retained. |
| Bank account number | Last 4 digits only | Full account number is purged after penny drop completes. |
| GSTIN | Encrypted | Needed for badge display and public verification profile. |
| Company CIN | Encrypted verification status | Company name and active status are used for display. |
| UIDAI identity result | Name confirmed / not confirmed | RakshaAI stores the verification outcome, not full identity data. |
| Bank account name match | Match / Not Match | Only the match result is kept. |
| GSTN business name | Business name for display | Required on verification profile and directory listing. |
| Verification date | Date of each check | Needed for badge display and renewal records. |
| Trust Score | 4/5 or 5/5 | Calculated from passed verification layers. |
Compliance and Encryption
- Aligned with India's Digital Personal Data Protection Act 2023.
- TLS 1.3 for data in transit and AES-256 for data at rest.
- Aadhaar retained only in masked display format after verification.
- Deletion requests can be sent to support@rakshaai.co and are processed within 30 days.
- No third-party data sales; RakshaAI's business model is subscriptions, not data resale.
Trust Score
How Your RakshaAI Trust Score Is Calculated
After applicable layers complete, RakshaAI calculates the score based on how many verification layers passed.
| Score | Layers Passed | Typical Applicant | Badge Status |
|---|---|---|---|
| 5/5 Excellent | GST + Aadhaar + PAN + Bank + MCA all confirmed | Pvt Ltd, LLP or OPC with current MCA compliance | Issued |
| 4/5 High | GST + Aadhaar + PAN + Bank confirmed; MCA not applicable | Sole proprietor or partnership | Issued |
| 4/5 High pending | Four auto-checks pass and MCA21 check is still running | Pvt Ltd with MCA check in progress | Pending |
| Below 4/5 | One or more critical layers failed | Inactive GST, PAN mismatch or bank name mismatch | Not issued |
The public verification profile reflects the latest verification or renewal result. If a plan expires, the page clearly shows Certificate Expired instead of continuing to imply current verification.
After Approval
What Happens After Your Verification Passes
Once applicable checks pass and your Trust Score is calculated, these outputs are generated automatically.
Trust Certificate Generated
A PDF certificate is generated with business name, Trust Score, verified layers, source portals, confirmation dates and unique badge ID.
Badge Files Created
PNG badge files at 80px, 160px and 300px are created, along with an SVG file, embed code and verification URL.
Public Verification Profile Created
Your profile goes live at rakshaai.co/verify/[badge-id] with business name, Trust Score, checks and verification date.
Directory Listing Published
Your business appears in the Verified Businesses directory so customers can find and confirm your verification.
Renewal Scheduled
Renewal reminders are scheduled and each renewal re-runs applicable checks against current source data.
Verified Against All Applicable Source Checks - Apply Now
Start your application in about 10 minutes. RakshaAI verifies from source systems and issues your badge package after approval.
FAQ
Frequently Asked Questions About Verification Standards
Quick answers about source checks, data storage, Trust Score calculation and renewal behavior.
Q: What are the RakshaAI verification standards?
A: RakshaAI verifies every business application across five official or regulated sources: GSTN for GST, UIDAI eKYC for Aadhaar identity, NSDL and Income Tax records for PAN, RBI-regulated bank verification, and MCA21 for company registration where applicable. A sixth internal fraud database check runs in parallel.
Q: How does RakshaAI verify my GST registration?
A: RakshaAI queries the GSTN portal to confirm whether the GSTIN is active, whether the registered business name matches the application, and whether filing status is current for the required period.
Q: Is my Aadhaar data safe with RakshaAI?
A: Yes. Your Aadhaar number is used only to trigger UIDAI eKYC OTP verification. After UIDAI confirms identity, the full Aadhaar number is purged. Only a masked display value and verification result are retained.
Q: What is penny drop bank verification?
A: Penny drop is a regulated bank account verification method. A micro-transaction is sent to the bank account and the bank response confirms whether the account is active and whether the account holder name matches the business.
Q: Does the MCA check apply to sole proprietors?
A: No. MCA21 applies to Private Limited companies, LLPs and OPCs. Sole proprietors and unregistered partnerships do not have a CIN, so Layers 1-4 are used and a 4/5 High Trust Score can still be fully valid.
Q: Is RakshaAI DPDP Act 2023 compliant?
A: RakshaAI's data handling is aligned with India's Digital Personal Data Protection Act 2023. We collect only data needed for verification and badge issuance, retain it only for the plan duration plus 90 days, and process deletion requests within 30 days.
Q: How is the Trust Score calculated?
A: The Trust Score reflects how many applicable verification layers passed. 5/5 Excellent means all five layers passed. 4/5 High commonly means GST, Aadhaar, PAN and bank checks passed while MCA is not applicable.
Q: Does RakshaAI store my PAN number?
A: No readable PAN number is retained. RakshaAI stores the encrypted verification result, such as PAN Active: Yes or No, associated with the badge verification record.
Q: What is the RakshaAI Trust Engine?
A: The Trust Engine is RakshaAI's internal fraud cross-check database containing user reports, flagged phone numbers, suspicious websites and scam intelligence. It runs silently on every application and can trigger manual review.
Q: Can the verification check my business after my plan expires?
A: After expiry, consumers clicking your badge see Certificate Expired. Government checks are re-run at application and renewal, not after a plan has lapsed.
Related Pages
Continue Through the Trust Certification Cluster
Use these pages to understand the application flow, display your badge or verify businesses already listed by RakshaAI.
How It Works
See the full application and verification process
OpenApply for Badge
Submit your application in about 10 minutes
OpenBadge Display Guide
Add your badge to website, WhatsApp and email
OpenVerified Businesses
Browse businesses that passed verification
OpenPrivacy Policy
Read RakshaAI's full privacy practices
OpenWebsite Safety Checker
Check any website for scams
OpenNeed a Human Review?
If a source check fails due to stale government records or a false fraud signal, contact support with your Application Reference Number.
Email SupportFound Fake Badge Abuse?
A genuine RakshaAI badge always opens a valid verification page. Report suspicious badge claims so users can be protected.