Video - KYC (Know Your Customer) Process 2025

RBI Guidelines on Video-KYC

The Reserve Bank of India issued a notification amending KYC norms in January 2020. This amendment permits all banks, Non-Banking Financial Companies (NBFCs), and fintech startups to complete the KYC process remotely using video technology with the following being mandatory:

1. The consent of customers should be confirmed before the Video-based Customer Identification Process (V-CIP)
2. The customer's live photo should be geo-tagged to confirm they are located within India
3. The application for the video KYC must be developed by the regulated entities and made available at specific customer touch points. Third-party video platforms are not to be used.
4. The video process can only be initiated from the lender's domain and should be stored safely and securely by the lending entity
5. The application will only be accessed through a live OTP, time OTP, or log-in ID and password
6. The documents required to complete the verification can be either captured by video or uploaded
7. Only banks are permitted to use OTP-based Aadhaar e-KYC authentication or offline Aadhaar verification
8. Non-banking entities are permitted to use only offline Aadhaar verification
9. If a customer does not wish to use Aadhaar for verification, other documents which provide the required details must be provided, which are officially valid
10. Documents that are uploaded onto the DigiLocker government platform can also be used

Check out: RBI Moratorium Guidelines

Why KYC is Important?

Know Your Customer (KYC) was introduced in 2002 by the RBI. It was made mandatory for banks to complete the KYC of all customers by December 2005. It helps financial institutions to authenticate and verify the identity and address of customers. It helps to ensure that money laundering and other illegal activities are not carried out by individuals. KYC is a one-time process.

Benefits of Video-KYC

The benefits of video KYC for both lenders and customers are numerous:

1. Customers don't have to be physically present during the verification process
2. This will make the process more inclusive for people from rural areas
3. It ensures the safety of individuals in times like the coronavirus pandemic when social distancing is required
4. It facilitates faster and smoother verification processes for a better customer experience during on-boarding
5. The costs of carrying out compliance and verification processes is reduced for financial institutions
6. The safety and security of documents is ensured with the elimination of middlemen or agents for document collection purposes

Video-KYC Process

The Video KYC process encompasses three essential components: document verification, identity verification, and liveness verification. This process is carried out in a structured three-step sequence. Initially, the Pre-Video KYC Capture stage involves completing necessary preliminary checks such as Aadhaar e-KYC, offline Aadhaar verification, or retrieving KYC records from CKYC or DigiLocker.

Following this, the Video KYC Call stage takes place, where the customer’s consent is obtained, and the video call is conducted to capture real-time evidence of the customer's identity and documents.

The final step, Audit/Review of the Call, ensures that the VKYC process is thoroughly reviewed by another official to verify the accuracy of the information and compliance with regulatory requirements. This comprehensive approach ensures the integrity and reliability of the Video KYC process. 

To start the video KYC process, follow the steps given below: 

Stage 1: Pre-Video KYC Call 

The Pre-Video KYC Call stage involves completing several mandatory steps to verify a customer’s identity before the actual Video KYC call takes place. This preliminary verification is crucial for ensuring that all necessary information and documents are in order before proceeding with the live video interaction. The Reserve Bank of India (RBI) mandates that eKYC or Aadhaar verification must be completed at this stage. There are four primary methods for accomplishing this: 

• OTP-Based Aadhaar e-KYC Authentication 

1. Process: An OTP (One-Time Password) is sent to the mobile number linked with the customer’s Aadhaar. The customer must enter this OTP to confirm their identity. 

1. Verification: Once the OTP is successfully verified, the customer's Aadhaar details can be accessed and used for further verification. 

1. Usage: This method is currently limited to banks and telecom operators, making it a secure and efficient way to perform identity checks. 

• Offline Verification of Aadhaar (using Aadhaar XML) 

1. Process: The customer generates a password-protected XML file from UIDAI’s website, which contains their Aadhaar details. 

1. Verification: The XML file, along with its share code, is provided to the verifying organization for offline verification. 

1. Advantages: This method allows for a paperless and secure verification process, ensuring that the customer’s Aadhaar details are safely transmitted and verified. 

• KYC Records from CKYC 

1. Process: Customers complete their KYC once, and their details are uploaded to a central KYC database known as CKYC. They are assigned a unique KYC Identification Number (KIN). 

1. Verification: Financial institutions (FIs) use this KIN to access the customer’s documents digitally from the central database. 

1. Efficiency: This method reduces the need for repetitive KYC processes across different institutions, as the customer’s information is already available in the central database. 

• Equivalent e-Document of Officially Valid Documents (OVDs) including DigiLocker Documents 

1. Process: Customers provide their Aadhaar number and authenticate their identity using an OTP sent to their Aadhaar-linked phone number. 

1. Verification: Financial institutions retrieve the customer’s documents directly from DigiLocker, a government-sanctioned digital repository, which serves as an official source for document verification. 

1. Customization: Banks with specific licenses can tailor the DigiLocker interface to their branding, while non-banks must use the official DigiLocker site. Non-banks often partner with a ‘DigiLocker Requestor’ to manage the DigiLocker-based Aadhaar eKYC on their behalf, ensuring compliance with regulatory standards. 

Stage 2: VKYC Call 

The Video KYC (VKYC) Call stage is governed by RBI regulations to ensure a secure and efficient verification process. In the VKYC process, data comparison is conducted through automated APIs that evaluate information from two sources: the Aadhaar eKYC details from the pre-VKYC stage and the information captured during the live VKYC call. Here is how it unfolds: 

• Consent, Permissions, Geo-tagging, and Network Check  

The process requires video recordings to include live GPS coordinates and date-time stamps to ensure authenticity. The RBI mandates that videos be of high quality to clearly identify customers, prevent fraud, and comply with regulatory standards.   

1. Consent: VKYC starts with recording the customer’s consent audibly and securely for using their personal information during verification. 

1. Geo-tagging: The customer’s location is geo-tagged after granting permission, ensuring compliance with RBI guidelines to prevent access from IP addresses outside India or spoofed IPs. 

1. Permissions: Permissions are obtained to access the customer’s camera and microphone, facilitating a smooth video call. 

• Connecting the Customer to an Agent 

VKYC is conducted exclusively by trained officials of the Regulated Entity (RE), as per RBI directives. In the VKYC process, customers can be connected to an available agent through random selection, where any free VKYC agent may handle the call. Alternatively, skill-based assignment matches customers with agents based on pre-call data such as location and language preferences, ensuring a better fit. If a customer is unavailable at the time of the call, they have the option to schedule a call for a more convenient time. 

• Live VKYC Call 

Agents check for consistency in names between Aadhaar records and VKYC details, match the government ID photo with the real-time selfie, and verify the date of birth across both stages. Based on these comparisons, the agent decides whether to approve or reject the customer’s profile, with any discrepancies or suspicious activities leading to rejection. 

1. Agents verify real-time interaction to ensure it’s not pre-recorded. This may involve hand gestures, answering security questions, or reading aloud displayed digits. 

1. Customers are prompted to show their documents and take a selfie during the call. Optical Character Recognition (OCR) technology may be used to extract text automatically, enhancing accuracy. 

1. PAN card, Driver’s License, Voter’s ID, and a wet signature on plain paper. 

Stage 3: VKYC review 

This is the last step of the VKYC process, the RBI requires financial institutions to conduct a secondary review of the VKYC call records. This review focuses on several key aspects: 

1. Proof of Liveness: Verification that the customer was genuinely present and interacted in real-time during the video call. 

1. Data Comparison Analysis: Ensuring that the agent has accurately compared the details from the two sources (pre-VKYC and live VKYC) without missing any critical observations. 

1. Critical Observations: Checking if any important aspects were overlooked by the agent during the call. 

This dual-layer review process both during and after the VKYC call ensures that the final decision to onboard or reject a customer is based on thorough and reliable evidence. 

Important Guidelines for Video-KYC

It is important to keep the following guidelines in mind during your video KYC to ensure that it is completed smoothly:

1. Make sure your background is white in color
2. There should not be anyone else in the frame
3. Your face should be clearly seen on the call
4. When displaying a document for the live capture, it should be displayed vertically from above
5. Make sure your ''location'' feature on your device is turned on
6. Make sure that the link to the video process directs to a website with the bank's domain name
7. To ensure the authenticity of the process, you could ask the officer to display their identity card and note down their name and employee ID

Documents required for Video-KYC

The documents required for video KYC would depend on the bank but are usually the following:

1. Pan Card
2. Driving licence
3. Address proof
4. Bank statements

A good credit score can help you secure lower interest rates on loans and credit cards.

Get Free Credit Score