A big relief to banking sector; RBI approves video KYC norms
In a major development, the Reserve Bank of India on Thursday announced video KYC guidelines to banks and fintech startups to get customers onboard remotely. The use of the Video-based Customer Identification Process (V-CIP) will be consent-based that will make it easier and convenient for banks and other finance regulated entities to follow KYC norms by leveraging the technology.
RBI released a notification regarding the amendment of the master KYC directions, which read, “…with a view to leverage the digital channels for Customer Identification Process (CIP) by Regulated Entities (REs), the RBI has decided to permit Video-based Customer Identification Process (VCIP) as a consent-based alternate method of establishing the customer’s identity, for customer onboarding.”
“The audiovisual interaction shall be triggered from the domain of the RE itself, and not from the third-party service provider if any. The VCIP process shall be operated by officials specifically trained for this purpose,” the notification further said.
The guidelines also clearly stated that the video call must be made through the official domain of the concerned bank and not from any third-party sources. Also, it is mandatory to capture a clear image of a customer holding a PAN card, except if the e-PAN is provided by the customer.