OVDs in Banking: Identity & Compliance Simplified

In India’s banking system, identity verification is more than a formality—it is a regulatory necessity. At the core of this process are Officially Valid Documents (OVDs), a select group of government-recognized proofs such as passports, driving licences, voter IDs, and NREGA job cards. Introduced through the Prevention of Money Laundering Act (PMLA) and reinforced by RBI’s KYC guidelines, OVDs are central to ensuring that every customer relationship is authentic, compliant, and fraud-free. 



Banks use OVDs extensively across account opening, loan processing, high-value transactions, and digital onboarding. While OVDs strengthen compliance and financial inclusion, challenges like mismatched addresses, exclusion risks, and document fraud persist. Technology, however, is transforming OVD verification through CKYC and API-based validations, making the process faster, more reliable, and customer-friendly. As banking becomes increasingly digital, OVDs remain the cornerstone of security, compliance, and trust in financial services.

https://gridlines.io/blogs/decoding-ovd-in-banking/

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