RBI amends KYC norms, introduces video-based identification process

The RBI has amended the KYC norms which will allow banks and other lending institutions regulated by it to use Video based Customer Identification Process (V-CIP). The move will help the institutions to onboard customers remotely. The V-CIP will be consent-based and 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 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 in a safe and secure manner and bears the date and time stamp.

Also, “REs are encouraged to take 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 on master directions said.

As per the circular, the reporting entity should capture a clear image of 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.

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.