RBI introduces video-based identification process for KYC
The RBI on Thursday amended the KYC norms allowing banks and other lending institutions regulated by it to use Video-based Customer Identification Process (V-CIP), a move which will help onboard customers remotely.
The V-CIP, which will be consent-based, will make it easier for banks and other regulated entities to adhere to the RBI's Know Your Customer (KYC) norms by leveraging the digital technology.
"With a view to leveraging the digital channels for Customer Identification Process (CIP) by regulated entities (REs), the Reserve Bank has decided to permit V-CIP as a consent-based, alternate method of establishing the customer's identity, for customer onboarding," the RBI said in a circular.
The RBI further said that the regulated entities will have to ensure that the video recording is stored safely and securely, and bears the date and time stamp.
Also, "REs are encouraged to take the assistance of the latest available technology", including artificial intelligence (AI) and face matching technologies, to ensure the integrity of the process, as well as the information furnished by the customer.
"However, the responsibility of customer identification shall rest with the RE," the circular said.
Last year, the Government had notified amendment to the Prevention of Money-laundering (Maintenance of Records) Rules, 2005.
The Reserve Bank said it decided to permit V-CIP as a consent-based alternate method of establishing the customer's identity, for customer onboarding to leverage the digital channels for Customer Identification Process (CIP) by REs.
As per the circular, the reporting entity should capture a clear image of the PAN card to be displayed by the customer during the process, except in cases where e-PAN is provided by the customer.
The PAN details should be verified from the database of the issuing authority.
"Live location of the customer (Geotagging) shall be captured to ensure that customer is physically present in India," it said.
Further, the official of the reporting entity should ensure that photograph of the customer in the Aadhaar/PAN details matches with the customer undertaking the V-CIP, and the identification details in Aadhaar/PAN should match with the details provided by the customer.
(Edited by Suman Singh)