Indian Overseas Bank introduces Aadhaar-OTP account opening, API banking services

Public sector lender, Indian Overseas Bank (IOB) has introduced Aadhaar-OTP-based account opening and API banking services, aligning with its efforts to enhance digital banking solutions.

The new initiatives were launched on the occasion of the bank's 89th Foundation day, a senior official said on Tuesday, reported PTI.

Aimed at simplifying banking for both individuals and businesses, the bank has rolled out an Aadhaar OTP based savings account opening facility. This feature allows customers to open an account conveniently through the bank's website while adhering to the Reserve Bank of India's eKYC (electronic know your customer) guidelines. the bank said in a press note.

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By utilising this digital process, customers can complete account opening with minimal paperwork. However, transactions will be subject to limits prescribed by regulatory norms, the statement added.

Additionally, IOB has introduced API (Application Programming Interface) banking services, catering to the growing need for automation in corporate banking. The new feature will enable corporate clients to perform transactions and intra-bank transfers directly from their accounting systems in real time, as per the bank.

“As we celebrate another milestone in IOB’s journey, our focus remains steadfast on delivering seamless, secure, and customer-centric banking solutions. The introduction of Aadhaar OTP-based account opening and API Banking aligns with our commitment to digital transformation, making banking simpler and more efficient for both individuals and businesses," said Ajay Kumar Srivastava, Managing Director and CEO, Indian Overseas Bank.

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The API banking service provides a secure digital gateway, allowing corporate entities to automate and streamline financial workflows. By integrating corporate accounting systems with the bank's Core Banking System, the initiative is expected to reduce redundant data entry and manual intervention, the note stated.

(With inputs from PTI)