On 9th January 2020, RBI released the much awaited circular comprising guidelines around performing Video KYC aka. Video Customer Identification Process (V-CIP).
Prior to this circular, it was mandatory for institutions regulated by the RBI (such institutions are referred to as REs or Registered Entities) to conduct an IPV (in-person verification) of their customers prior to account opening. This makes KYC (and in-effect account opening) a time, manpower and cost intensive process.
Video KYC is a much awaited relief and a boon for the financial sector as the RE’s can now do the in-person verification process/customer KYC over a video call. Besides, nowadays, Video KYC verification is also available for all with the latest and the best Video KYC tools.
This alternative customer verification process enables and promotes efficiency in time and cost investments and manpower management while improving security, auditability, and demographic penetration. Moreover, RE’s have also been advised (allowed) the usage of AI based solutions like face matching, OCR, liveliness check, etc to further speed up the process and reduce fraud.
Below are the key features from the RBI’s Video KYC (V-CIP) circular:
- The Video KYC process is to be divided into two parts –
- The Video KYC Session
- The Concurrent Audit
- Video KYC must be performed only by an RE authorized employee over a two way video + audio call with the customer.
- The process must take place on RE’s domain only – WhatsApp, Google Hangouts/Duo, Skype and other similar soultions cannot be used for this purpose
- A geo-location check must be enabled to ensure that the customer is in India whilst in the Video KYC session.
- For the purpose of POI OSV – the RE personnel must capture a live picture of the customer’s PAN card during the process (except in cases where e-PAN is provided by the customer) – the same has to be checked against NSDL database.
- Additionally, an OVD amongst the following can be used for POA:
- Driving License
- Voter ID
- The RBI circular provides that while Aadhaar is not a mandatory document,
- Banks can make use of Aadhar e-KYC service made available by UIDAI directly.
- Other RE’s wishing to use Aadhaar as an OVD can opt for
- Offline Aadhaar XML
- SecureQR code based Aadhaar verification.
- The latter two must not be more than 3 days stale from the date of carrying out the Video KYC session.
- Moreover, proof of possession of the Aadhaar number is considered satisfactory – so additionally, in case the customer has a physical copy of the Aadhaar card with them, a live picture of the same akin to the PAN process must be captured during the Video KYC session.
- If Aadhaar is treated as an OVD, Aadhaar images must be stored with the first 8 digits of the Aadhaar number redacted/masked away; same goes for the aadhaa
- During the process, the RE must also capture a live photo of the customer and ensure that the photo on the OVD matches the live customer.
- A set of random questions have to be presented to the customer to ascertain liveliness and protect against fraud and collusion. These questions can be unique per customer and can be picked up from the details they filled in the application form. Alternatively, they can be completely random as well.
- The complete process must take place over a secure communications channel, be real-time and seamless.
- The session must be recorded, time and geo-stamped and kept in a secure location; available for retrieval as proof and for audit.
- Once the Video KYC process (stage 1) is complete, a Concurrent Audit must mandatorily be performed to further cross-validate customer details and to ensure sanctity of the Video KYC process to rule out any collusion/fraud possibilities. The Concurrent Audit includes a complete check of the Video KYC session recording along with customer details.
- To ensure that no fraud/collusion takes place, the Concurrent Audit and Video KYC session should be performed by two separate authorized employees of the RE.
- Only when the Concurrent Audit marks all documents as clear can the customer’s account be opened.
The RBI Video KYC Circular URL – https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=11783
Kwik.ID Video KYC is a fully RBI compliant Video KYC / V-CIP solution that additionally features Facematch, OCR, Aadhaar XML, e-Aadhaar, PAN, DL, Voter ID verification, Liveliness detection and a concurrent audit portal; it also comes packaged with scheduling, routing, link-based initiation, suport for low-bandwidth connections, customizability, compatibility with mobile apps as well as websites and a lot more features.
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