RBI's Approval of Video KYC for Banks for is a Game Changer

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RBI's Approval of Video KYC for Banks for is a Game Changer One of the ground-breaking decisions this year has been the RBI giving the video KYC procedure the green signal. The circular that changed everything was released earlier this year on 9th January 2020, which gave a thumbs up to the VCIP Digital KYC solutions and also framed a guideline for carrying out this procedure. The significance of the procedure is immense and earlier KYC verification procedures carried out by institutes required an IPV, which means in-person verification. This decision also was timely as within months the entire world was engulfed by the infamous pandemic which absolutely restricted any physical contact.

This procedure was also cost-effective and saved time as it did not require any physical visit. The verification could be done via a video call and the implementation of AI solutions like OCR made it even more efficient.

So what are the salient features of the Video KYC procedure? Some of the key points that emerged could be summed up for getting a general idea

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Only an RE authorized employee can perform this procedure which must be a two-way video and audio call with the customer and it must take place only on RE’s domain. No other platforms would be allowed to be used for the purpose. The geo-location check needs to be done to ensure that the customer is in India during the session. A live picture of the PAN is essential unless the e-PAN has already been provided.

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Some random questions also need to be asked to prevent any kind of fraud and the entire session needs to be recorded. Post the completion of the Video KYC process, a Concurrent Audit procedure needs to be conducted for cross-validating the details of the customer and for ensuring the sanctity of the session.

Those were a couple of important pointers regarding the procedure, for full information, one should refer to the full circular. However, the Video KYC for Banks is being implemented and this is paving a new path for all institutes. The digital solutions are definitely going to make the future smoother. If you want to know more, check the full blog here at https://getkwikid.com/blog/2020/04/11/rbivideo-kyc-v-cip-guideline-circular/

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