Banks can use video to complete KYC in cases where the customer is unable to visit the bank for physical verification.

Money KYC Saturday, January 11, 2020 - 20:32

The Reserve Bank of India too is trying to leverage technology for facilitating some of its banking processes. In its latest move, the regulator said banks can use video technology to complete KYC in cases where the customer is unable to visit the bank for physical verification, according to Financial Express. This will be called Aadhaar-based Video Customer Identification Process or V-CIP. 

There is already an e-KYC facility available for competing the KYC formalities remotely. The new process will become an additional method in the hands of the banks. This new process has been done through the amendment of the Prevention of Moneylaundering (Maintenance of Records) Rules, 2005.

The RBI has further clarified that this V-CIP can be done by banks, which means the bank has to obtain the consent of the customer for a video KYC exercise before it carries it out.

The process itself will involve capturing the photo of the customer when they are connected thrugh video. The location of the individual at the time of the video contact (in terms of the latitude and longitude) will also be recorded. The RBI has also authorised certain Reporting Entities (REs) for this purpose and they will be required to comply with these instructions. 

"Banks can use either OTP based Aadhaar e-KYC authentication or Offline Verification of Aadhaar for identification. Further, services of Business Correspondents (BCs) may be used by banks for aiding the V-CIP," the RBI said. 

"REs other than banks can only carry out Offline Verification of Aadhaar for identification," it further added. 

The customer will have to hold aloft his or her PAN card while being video graphed for the V-CIP. With necessary matching of the details with the details provided, whether Aadhaar or PAN, will be carried out and recorded to complete the process.

RBI is hoping that this additional method for KYC will help banks complete the process expeditiously.