CPV complete form in banking is known as Contact Point Verification.
Contact point verification, also known as physical verification is the act of confirming and validating the authenticity of a person’s name, address and information by conducting physical visits to his address. Banks conduct this verification prior to providing any service to make sure that the details supplied by the applicant in relation to his Identity and address are correct as well as reliable and impartial.
The phone number and the E-Mail ID can be checked internally by Banks. For address verification, Banks generally outsource some external organization to carry out the CPV. For verification of address these agencies visit physical locations to verify the address of applicants and utilize custom-designed tools and Android-based apps to track the movements of its field managers and, in turn, provide live reports to their clients.
Importance of CPV
- Someone with a fraudulent motive submits a an incorrect address and conceal their true address. It is therefore important to check the address to verify that the address is genuine.
- It is essential to send reminders and completing follow-ups in the event of a non-payment
- If a loan turns NPA the legal and demand notices have to be delivered to the the defaulter’s residence
Challenges in CPV
- If the facility leases, rents or shared between multiple businesses
- CPV cannot promise foolproof results each time. The applicant may prove to be a fraud.
It is crucial to get the permission of the applicant prior to any verification. Without their permission, it’s not appropriate to validate any information supplied by them.
