Banks and financial institutions now use the KYC formula to identify different customers. The aim of using the formula of Know Your Customer is to prevent money laundering and fraud in the banking sector. The process of KYC is not complete without OVD. What is OVD full form in banking sector? It is an officially valid document and it is necessary to complete the full KYC procedure.
This blog lists the importance of OVD in the process of completing KYC. Let us discuss the documents included in the OVD category.
Full form of OVD in the banking sector
We discussed OVD full form in banking field in the above section. Now, let us discuss how it is useful in the banking procedure. OVDs are used while opening a new bank account or applying for any kind of loan. They are also used in many financial activities of the banks.
What are documents covered under OVDs?
OVDs are officially valid documents that are used for carrying out the KYC procedure. The different documents included in OVDs are:
- Passport
- Aadhar Card
- Driving license
- Voter ID
- PAN card
- Job Card
These documents help to verify the identity of the individuals.
Importance of OVDs in the process of KYC
OVDs are important in various ways such as:
- These documents act as identity proof for an individual
- Documents such as Voter ID and utility bills act as address proof of a person.
- Officially Valid documents stop fraudulent activities in the banking sector. They also stop money laundering and other illegal activities in the banks.
Conclusion
This is OVD full form in banking and how OVDs are useful in establishing the identity of a person. These documents help in getting a smooth banking procedure by reducing fraud and illegal activities.
