OVD Full Form in Banking is Official Valid Document. This term is primarily used in the context of identity verification and KYC (Know Your Customer) norms. It refers to government-issued documents that are considered valid for identifying an individual for banking transactions.
Common OVDs Used in Banking
- Passport
- Aadhaar Card
- Voter ID Card
- Driving License
- Pan Card
Importance in Banking
Banks and financial institutions require customers to submit an OVD as part of the KYC process when opening an account or conducting significant transactions. These documents help in preventing fraud, money laundering, and ensuring compliance with financial regulations.
KYC and OVD
According to the Reserve Bank of India (RBI), OVDs play a key role in verifying the identity of customers and ensuring they are not involved in illegal activities. For example, individuals wishing to open a new bank account need to provide a valid OVD as proof of identity and address.