The Reserve Bank of India has recently announced that the bank customers in the country now have the freedom to get their aadhar based verification done via the Video Customer Identification Process, V-CIP. The video KYC feature will enable banks and their customers to remote the KYC process while being in any part of the world over the video facility.
People can opt for this method of getting their KYC done over the e-KYC facility. The Central Bank of India made an amendment in the 2005 Prevention of Money Laundering rules to introduce the Video Customer Identification Process facility.
RBI said in a circular on Thursday, “…with a view to leveraging the digital channels for Customer Identification Process (CIP) by Regulated Entities (REs), the Reserve Bank has decided to permit Video-based Customer Identification Process (V-CIP) as a consent-based alternate method of establishing the customer’s identity, for customer onboarding.”
As per the Reserve Bank of India, the Video Customer Identification Process method of getting the KYC done is only consent-based. Simply speaking, the customer has to agree on the video means of KYC verification. This new feature will make it breezy-easy for banks in the country to adhere to the RBI’s guideline of knowing the customer by leveraging the power of digital technology.
Digital KYC Redefined
The Central Bank of India has tweaked with the definition of the “Digital KYC” in Section 3 of its Master Direction over KYC which was dated February 25th, 2016.
The central bank has changed the definition of “Digital KYC” in Section 3 of its Master Direction on KYC dated February 25, 2016. It has now been defined as “capturing live photo of the customer and officially valid document or the proof of possession of Aadhaar, where offline verification cannot be carried out, along with the latitude and longitude of the location where such live photo is being taken by an authorized officer of the Reporting Entity (RE) as per the provisions contained in the Act.”
As the official circular which is released by the Reserve Bank of India, the bank can record the video and take the snap of the customer during the identification process.
The banks in the country can either go with the offline aadhar verification or OTP based e-KYC authentication. In addition to that, the BCs services can be employed by banking for including the V-CIP feature for verification. However, REs other than banks are not allowed to implement the video mode of aadhar card verification.