On thursday, RBI changed the KYC norms which allows banks and other lending institutions regulated by it to use Video based Customer Identification Process (V-CIP) This step will help them to reach the customers remotely.
The V-CIP, which will be consent-based, will make it now even more easy for all the institutions and the banks to do KYC of the customers in compliance with the RBI norms. “… 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 also said that the banks have to ensure that the videos are kept at safe place and it should have time and proper stamp on it.
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.
Last year, the government announced the changes in the Prevention of Money-laundering (Maintenance of Records) Rules, 2005.
RBI said that it took this decision of video based Customer Identification Process (V-CIP) as a consent based alternate method taking KYC’s for customer onboarding with a view to leveraging the digital channels for Customer Identification Process (CIP) by REs.
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.