Finance

RBI introduces video-based KYC: Here's how to do it

Updated : January 11, 2020 11:50 AM IST

According to the new circular, RBI has allowed capturing the live photo of the customer and officially valid document for identification purpose.

KYC application can be accessed only through login-id and password or Live OTP or Time OTP.

The live photograph of the officially valid document should be captured vertically from above.

The Reserve Bank of India (RBI) has amended the Know Your Customer (KYC) norms allowing the banks, lending companies and fintech startups to remotely complete KYC of customers through video. Lenders can use this facility as an alternative to the already available e-KYC facility. The central bank, however, said that the Video-based Customer Identification Process (V-CIP) will be consent-based. This means that banks will have to initially take the consent of customers to perform the video-based KYC.

According to the new circular issued on Thursday, RBI has allowed capturing live photo of the customer and officially valid document for identification purpose. Also, RBI has mandated for the geo-tagging of the customer's video to ensure that they are located within the borders of the country.

Here are the steps for video-based KYC:

1. The regulated entity (banks, lending companies and fintech startups) will initially develop an application for the digital KYC process that will be made available at customer touch points for undertaking KYC of their customers.

2. The application will be accessed only through login-id and password or Live OTP or Time OTP. The customer, for the purpose of KYC, will have to visit the location of the authorised official of the RE or vice-versa.

3. The background behind the customer while capturing live photograph should be of white colour and no other person should come into the frame while capturing the live photograph of the customer. The live photograph of the officially valid document should be captured vertically from above, the central bank said in the circular.

4. All the entries in the application form will be filled according to the documents and information furnished by the customer.

5. In the documents where Quick Response (QR) code is available, such details will be auto-populated by scanning the QR code instead of manual filing of details.

6. Once the above mentioned process is completed, a One Time Password (OTP) message containing the text that ‘Please verify the details filled in form before sharing OTP’ would be sent to customer’s mobile number.

7. Upon successful validation of the OTP, it will be treated as customer signature on the application.

8. The application will then give message about the completion of the process. The authorised officer will further check and verify if the live photograph of the customer matches with the photo available in the document and all other necessary details.

9. On successful verification, the application form should be digitally signed by authorised officer.

10. He will then take a print of the application form, get signatures/thumb-impression of customer at appropriate place, then scan and upload the same in system. Original hard copy may be returned to the customer, RBI mentioned in the circular.