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  • A Complete Guide to Video-KYC Process

    Video KYC Process

    Date Published:

    The Know Your Customer (KYC) process is an important part of many banking transactions, from opening a savings account to loan applications. It is a mandatory process as per Reserve Bank of India (RBI) policies. In the wake of Covid-19 pandemic, banks are completing the KYC process using video technology. As such, it is important to know what video KYC is and how to complete the process in the right way so that your loan/credit card applications or savings/salary account opening processes are completed quickly and smoothly.

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    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:

    • The consent of customers should be confirmed before the Video-based Customer Identification Process (V-CIP)
    • The customer’s live photo should be geo-tagged to confirm they are located within India
    • 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.
    • The video process can only be initiated from the lender’s domain and should be stored safely and securely by the lending entity
    • The application will only be accessed through a live OTP, time OTP, or log-in ID and password
    • The documents required to complete the verification can be either captured by video or uploaded
    • Only banks are permitted to use OTP-based Aadhaar e-KYC authentication or offline Aadhaar verification
    • Non-banking entities are permitted to use only offline Aadhaar verification
    • 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
    • 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:

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

    Video-KYC Process

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

    Step 1: Visit the official website of the bank or NBFC

    Step 2: Fill up the details required in the online form

    Step 3: Provide consent to the lender to fetch your Aadhaar details or an e-PAN verification process

    Step 4: Provide access to your phone’s location for geo-tagging purposes

    Step 5: Upload documents which are officially valid. These can be images on your phone, PDF files, or documents stored in the government’s DigiLocker facility. Details from these documents will be used to fill in the application form

    Step 6: A One Time Password (OTP) will be sent to your registered mobile number with the message requesting you to verify the details in the form before sharing the OTP

    Step 7: Once you validate the OTP, it is taken as your customer signature on the application form

    Step 8: The bank will send an SMS to your registered mobile number which contains a link to the web-page hosted by the bank for the video call. Some banks automatically direct you to the webpage for the video call from their website.

    Step 9: An officer will initiate the video call with you to verify the details provided based on the documents uploaded

    Step 10:  A live photograph will be captured during the video call which will be cross-checked with the photograph uploaded earlier. Some banks may also use facial recognition technology for confirmation with the photographs provided earlier.

    Step 11: You may be required to display some documents on the video call from which the required details will be captured by the software

    Step 12: You will be asked random questions based on the documents provided

    Step 13: Once the call is complete, the officer makes their recommendation for approval or rejection of your application. If verification is successful, the application form will be digitally signed by the authorised officer.

    Step 14: The officer will then take a printout of the application form and get your signature on the form. This will be scanned and uploaded onto the system. The original hard copy of the form maybe returned to the customer.

    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:

    • Make sure your background is white in color
    • There should not be anyone else in the frame
    • Your face should be clearly seen on the call
    • When displaying a document for the live capture, it should be displayed vertically from above
    • Make sure your ‘'location’' feature on your device is turned on
    • Make sure that the link to the video process directs to a website with the bank’s domain name
    • 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:

    • PAN card
    • Driving license
    • Address proof
    • Bank statements

    FAQs

    1. Is Aadhaar compulsory for video-KYC?

      According to RBI guidelines, Aadhaar is not compulsory for video-KYC. Other officially recognised documents which contain the required details can be used. However, the Aadhaar number has to be given at the time of sign-up. This will be verified by the UIDAI through an OTP.

    2. Can the video-KYC be done using FaceTime or Whatsapp?

      No, third-party video applications are not permitted for video-KYC.

    3. Can third-party agents be the verifying agents for the bank?

      No, the RBI has mandated that only bank employees can be the verifying agents for video-KYC.

    4. What happens if the video-KYC is interrupted due to internet connectivity or other issues?

      In such cases, the video-KYC process will be restarted.

    5. What should I keep in hand during the video-KYC process?

      It would be helpful to keep a pen, notepad, your PAN card, and the device you are using for the video-KYC.

      

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