CPV full form in banking is Contact Point Verification.
Contact point verification or Physical verification is a process of validating and confirming the accuracy of customer’s identity, address and contact details provided by him by making physical visits to his address. Banks conduct this before offering any service to ensure that the information provided by applicant with respect to his Identity and Address are accurate, reliable and unbiased
Phone number and E-Mail ID can be verified internally by the Banks. However, for address verification, Banks generally outsource some external agency to conduct the CPV. To verify address, such agencies conduct physical visits to verify applicants address and use customized tools and Android-based applications to monitor the movement of its field executives and thereby provide live reports to clients
Importance of CPV
- People with fraudulent intentions submit wrong address and hide their original address. So it’s necessary to personally visit the address to confirm the genuinity of the address.
- It is necessary for sending reminders and taking follow ups in case repayment is irregular
- In case a loan becomes NPA, then legal and demand notices are to be sent to the place of defaulter’s residence
Challenges in CPV
- When the establishment is leased, rented, or shared among multiple businesses
- CPV does not guarantee fool proof results every time. Applicant may still turn out to be fraudulent.
It is necessary to take the consent of applicant for any kind of verification. Without their consent, its not appropriate to verify any information provided by them.
