OVD full form in banking is Officially Valid Document. These are documents accepted by banks as valid proof of a customer’s identity and address during the KYC (Know Your Customer) process. OVDs help banks verify customer information accurately and ensure that accounts are opened only after following proper legal guidelines.
What Is OVD in Banking?
Officially Valid Documents (OVDs) are documents recognized by the Reserve Bank of India (RBI) for KYC verification.
Banks must collect OVDs to confirm the identity and address of every customer before opening an account, issuing a loan, or providing other financial services.
OVDs are essential for preventing fraud, ensuring security, and maintaining compliance with KYC and AML (Anti-Money Laundering) norms.
List of Accepted OVDs in India
According to RBI guidelines, the following documents are considered OVDs:
- Aadhaar Card
- Passport
- Driving Licence
- Voter ID Card
- NREGA Job Card (duly signed by a state official)
- Letter issued by National Population Register (NPR)
These documents serve as reliable proof of both identity and address.
Importance of OVD in the Banking Sector
1. Ensures Accurate Customer Verification
OVDs help banks verify a customer’s true identity and prevent identity theft or fraudulent activities.
2. Mandatory for KYC Compliance
Without an OVD, customers cannot open bank accounts or access major banking services.
3. Supports AML Guidelines
Accurate customer verification helps banks detect suspicious transactions and maintain transparency.
4. Protects Both Bank and Customer
OVDs ensure the bank deals with genuine customers while safeguarding customer accounts from misuse.
OVD for Minors and NRIs
- Minors: Birth certificate, school ID, or Aadhaar may be accepted along with guardian details.
- NRIs: Passport, valid visa, and overseas address proof serve as OVDs.
Conclusion
The Officially Valid Document (OVD) plays a crucial role in the banking system by ensuring secure and transparent customer verification. As part of the mandatory KYC process, OVDs help protect banking operations, prevent fraud, and build a trustworthy financial environment for customers across India.