OVD, which stands for Officially Valid Documents, is a set of six documents that are recognized by the Reserve Bank of India (RBI) as legal proof of identity and address for the purpose of completing KYC (Know Your Customer) formalities when opening a bank account or for any other financial transaction.
The Purpose of OVD and KYC Norms
KYC is a mandatory process used by banks and financial institutions to verify the identity and address of their customers. The primary goal of KYC is to prevent financial crimes like money laundering, terrorist financing, and identity theft. By collecting and verifying OVDs, banks can ensure that they are dealing with a legitimate individual.
As per the RBI’s Master Direction on KYC, submitting an OVD is a mandatory requirement for opening a bank account, investing in mutual funds, or availing any regulated financial service in India.
The Six Officially Valid Documents (OVDs)
The RBI has specified the following six documents that qualify as OVDs. To complete full KYC, you need to provide one of these documents, which must contain both your proof of identity (photo) and proof of address. If the OVD does not have your current address, you can provide an OVD for identity proof and another valid document for address proof.
| Document | Key Features | Serves as |
|---|---|---|
| 1. Indian Passport | A government-issued travel document. | Proof of Identity and Proof of Address. |
| 2. Driving Licence | Issued by the Regional Transport Office (RTO). | Proof of Identity and Proof of Address. |
| 3. Voter’s Identity Card | Issued by the Election Commission of India. | Proof of Identity and Proof of Address. |
| 4. PAN Card | Permanent Account Number card issued by the Income Tax Department. | Proof of Identity only. It does not contain an address. |
| 5. Aadhaar Card | 12-digit unique identity number issued by UIDAI. | Proof of Identity and Proof of Address. |
| 6. NREGA Job Card | Job card issued by a State Government under the National Rural Employment Guarantee Act, duly signed by an officer of the State Government. | Proof of Identity and Proof of Address. |
Important Note: The PAN card is an OVD for identity proof only. If you submit a PAN card, you will need to submit another OVD or a different valid document for your address proof.
What if Your OVD Doesn’t Have Your Current Address?
It’s a common situation where a person’s current address is different from the one mentioned on their Aadhaar or Passport (e.g., after moving to a new city for a corporate job). In such cases, the RBI allows you to submit any one of the six OVDs as proof of identity, along with one of the following documents as proof of your current address:
- Utility bill (electricity, telephone, gas, water) that is not more than two months old.
- Property or Municipal tax receipt.
- Pension Payment Orders.
- Letter of allotment of accommodation from an employer.
You can also provide a self-declaration that your address has changed. This is known as ‘partial’ or ‘limited’ KYC, and it may come with some restrictions on the account.
Understanding OVDs is a crucial part of navigating India’s banking system. The rules are set by the Reserve Bank of India to ensure the security and integrity of the financial system. It is a fundamental requirement, just as a Vakalatnama is for legal representation.
Frequently Asked Questions (FAQs)
What is the full form of OVD?
The full form of OVD is Officially Valid Documents. It is a list of six documents specified by the RBI that are accepted by banks and financial institutions as proof of a customer’s identity and address for KYC purposes.
What are the 6 OVDs as per RBI?
The six Officially Valid Documents are the Indian Passport, Driving Licence, Voter’s Identity Card, PAN Card, Aadhaar Card, and the NREGA Job Card issued by a State Government.
Is a PAN card a valid OVD for both ID and address proof?
No. A PAN card is an Officially Valid Document for Proof of Identity only. It does not contain an address and therefore cannot be used as Proof of Address. If you provide a PAN card, you must submit another document for your address verification.
Can a bank refuse to accept one of the six OVDs for KYC?
No, as per RBI guidelines, a regulated entity like a bank cannot refuse to accept any of the six specified OVDs for KYC verification, provided the document is valid and genuine.
What should I do if my address has changed and is not updated on my Aadhaar card?
If your current address is different from the one on your OVD, you can submit your OVD for identity proof and provide a separate document like a recent utility bill (not more than two months old) or a rental agreement as proof of your current address.