Officially Valid Document

OVD Full Form in English, letter by letter

OVD means Officially Valid Document, the short list of identity and address proofs that banks accept under the RBI's KYC rules.

OVD Full Form in Indian Languages

OVD is the term on every bank KYC form: Officially Valid Document. Its name is shown below in six Indian languages.

The six documents that count as an OVD

In the RBI KYC directions, an Officially Valid Document is one of six items: a passport, a driving licence, proof of possession of an Aadhaar number, a voter identity card issued by the Election Commission, a job card issued under the NREGA (now MGNREGA) and signed by a state government officer, and a letter issued by the National Population Register with name and address.

Any one of these can be used for KYC when you open a bank account, provided it carries the details the bank needs. A farm worker with a job card and a professional with a passport meet the same standard at the counter.

Some banks also ask for a photograph of the customer, but this is on top of the OVD. The requirement is one OVD that proves identity and address, along with PAN or a Form 60 declaration.

When the address on your OVD is old

If the address on the OVD is not your current address, banks accept certain other documents as proof of the current address. These include a recent utility bill (electricity, telephone, piped gas or water bill) not older than two months, a property or municipal tax receipt, and pension or family pension payment orders. The customer then has to submit an updated OVD with the current address within a stated time, which the bank records.

A bill in someone else's name is usually not enough. Ask the bank to list exactly what it will accept before you queue, and carry the originals along with photocopies.

For a new city, ask whether the bank accepts a digital copy of the bill from the utility's app. Many accept one that shows the name, address and bill date clearly, but practice differs from bank to bank.

PAN, Aadhaar and the rules around them

PAN is needed for most financial transactions, but it is not one of the six OVDs. Banks ask for it for tax compliance. A person without PAN can give Form 60 instead. A PAN card alone will not complete your KYC, because it does not carry an address.

Aadhaar can be used as an OVD or for e-KYC with consent, in which the details are confirmed with an OTP or biometrics. After the Supreme Court's 2018 judgment in the Puttaswamy case, a bank account cannot be made conditional on Aadhaar. A customer can offer another OVD instead.

Video KYC and small accounts

Since January 2020, banks have been allowed to complete KYC through a live video call, matching the person against the OVD and official records instead of a branch visit. The original document must be shown on camera, so a photocopy alone will not do.

For people who do not have an OVD, the rules allow a 'small account' with limits on balance and transactions. It is valid for twelve months and can be extended by a further twelve months if the holder shows that an OVD has been applied for. After that the account needs a full OVD.

Documents for non-residents and joint accounts

Alongside an OVD, account opening usually asks for a photograph, PAN or Form 60, and a mobile number for alerts. Nominations are encouraged. In a joint account every holder is verified separately.

Non-residents provide a passport, a visa and proof of overseas address in place of the domestic documents, which is why NRIs sign a different form at most banks.

If you move house, tell the bank your new address and give the supporting document. Banks use the address on record for statements and notices, and a wrong address is a common reason why customers miss a re-KYC letter.

Keeping KYC current

Banks update customer records on a schedule based on risk: at least every two years for high-risk customers, every eight years for medium-risk and every ten years for low-risk ones. Most customers fall in the low-risk group, so they are asked for a refresh once in a long while.

A bank that does not get the documents can restrict an account until they are produced. Keep your mobile number and address updated, and reply to notices sent by SMS, email or post, because ignoring them turns a routine refresh into a restricted account.

In practice, OVD means the short list of documents a bank must accept for KYC. Take any one of the six, an Officially Valid Document such as an Aadhaar, passport or voter ID, with your PAN, and account opening is usually quick.

OVD Full Form: Common Questions