RBI Introduces Video-based Identification Process for KYC

TIL Desk/Business/Mumbai/ 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 them 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 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.