OSV full form in banking is On-Site Verification (OSV). It is a process used by banks and financial institutions to physically verify the details provided by customers at their actual location. This verification method helps in assessing the authenticity of an applicant’s information, whether for opening a bank account, applying for a loan, or conducting financial transactions.

Importance of On-Site Verification (OSV)

1. Fraud Prevention – OSV helps banks minimize risks related to identity theft, money laundering, and fraudulent transactions by ensuring the accuracy of customer-provided details.
2. Regulatory Compliance – Banks must comply with KYC (Know Your Customer) and AML (Anti-Money Laundering) regulations, which often require on-site verification for high-value transactions or loan approvals.
3. Loan Processing & Business Verification – In cases of business loans, OSV helps banks verify the existence and operations of an enterprise before approving the loan.

Other Meaning of OSV in Banking

Apart from On-Site Verification, OSV can also stand for Original Seen and Verified in banking. This refers to the practice where bank officials review original documents, such as identity proofs, address proofs, and financial statements, and mark them as verified after checking their authenticity.