Officially Valid Documents (OVDs) are usually used for verification and KYC (Know Your Customer) processes. These documents also serve as valid identity proof and are recognised by financial institutions and banks. OVDs can be especially useful when applying for a new loan or opening a new bank account.
Examples of OVDs include:
- Passport
- Driving License
- Aadhar Card Number
- Voter ID Card
- A letter issued by the National Population Register containing the name and address
Purpose
OVDs are generally accepted by banks, regulatory bodies, and financial institutions to verify a customer’s identity. They serve as proof of identity and address for KYC procedures and ensure regulatory compliance. This verification process helps ensure that the customer’s address, phone number, and other details are correct and genuine.
Why OVDs Are Important?
Identity Proof
OVDs help confirm a person’s identity. These documents typically contain personal details such as the customer’s address, date of birth, nationality, etc. All of these make it easier for the bank or financial institution to verify the person’s identity and serve as identification proof.
Address Verification
Address verification is crucial for ensuring the accuracy of the customer’s data. It helps detect fraud by confirming the legitimacy of the customer’s address and verifying whether they truly reside at that address.
Regulatory Requirement
Banks and financial institutions are obligated by various regulatory bodies to collect and verify OVDs from customers for KYC purposes. This process helps prevent illegal activities, such as money laundering or fraud.
Summing Up
Officially Valid Documents simplify the process of verifying identity and address. These documents allow banks and financial institutions to confirm the legitimacy of customer details and ensure compliance with legal requirements.
FAQs
What are Official Valid Documents (OVDs) as per RBI?
Official Valid Documents are often used for KYC purposes. The Reserve Bank of India (RBI) considers these documents as officially valid: Passport, Voter’s ID card, Driving License, Aadhaar letter/card, NREGA Job card, and a letter issued by the National Population Register containing details of name and address.
What are Six OVDs?
The six OVD documents include passport, driving license, voter IDs, Pan Card, Aadhar Card, job card issued by NREGA.
