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What is Video KYC

Author: Mufaddal Arthuna
by Mufaddal Arthuna
Posted: Feb 01, 2020

We are living in a Hi-Tech world where everything around us is getting automated and efforts are made to minimalize human interventions. We now have apps on our mobile for almost every daily need be it Vegetable, Fruits, medicines or Electronic gadgets everything can be ordered online.Video Know Your Customer (video KYC) as the name suggest is a process to verify a customer using video conferencing. This process could also be used for verifying the customer’s government IDs. Video KYC is far more cost-effective than physical KYC. Since it is a video conference the TAT for this process is in minutes as compared to a lengthy 1-2 day exercise for a physical one. Video KYC is perfectly aligned with our vision of Digital India.

FEATURES OF DIGITAL KYC SYSTEM• Real-Time Verification Process: Verify the accuracy of your customers’ data with a hassle-free procedure.• Facial Recognition: Get the match percentage of the digital image of the face with the live picture taken.• Verification: APIs process the live photo to government databases and match them to provide an accuracy percentage of your customer’s identity• Flexible: Supports all types of KYC document including PAN, Aadhaar, Driver’s License (DL), Voter ID and Passport• Authentication: Customers ID Proofs like PAN, Aadhaar, Driver’s License (DL), Voter ID and Passport are verified and assured to be non-tampered and genuine.• Efficient: Quick procedure of on-boarding customers using AI Based technology.• Secured: Completes all legal and regulatory compliance along with impervious data security

RBI GUIDELINES ON KYCSection 3 of the amended PML Act has explained ‘Digital KYC’ as a procedure to verify details of the customer by capturing their live photo or their ID proof, along with their current location details where the authorized officer has taken the photographs.Equivalent e-document is issued by the issuing authority of the document as an electronic form of a document similar to the original one supported by valid digital signature. Also, a customer for processing customer due diligence is liable to submit all the necessary documents as required by the Reporting entity including documents required to support the nature of the business or financial status of an individual.If a customer wants to provide a current address, different from the address as per the identity information available in the Central Identities Data Repository, he may give a self-declaration to that effect to the Regulated Entity.The procedure to carry out V-CIPTo set up an account-based relationship with the customer, video-based customer identification procedure needs to be carried out by RE as per RBI guidelines i.e.? The RE shall capture customers photograph and match it with the identity through OTP based authentication or offline verification of Aadhar.? Live location is to be captured by the RE assuring customer’s presence in the nation followed up by match percentage of the capture and existing data.? The QR code used for Aadhar verification should not be generated more than 3 days before from the day of carrying out V- CIP? The integrity of the process should be justified by making accounts operational only after concurrent audit, usage of Artificial Intelligence (AI) and face matching technologies? Software and security audit should be carried out and there should be no other individual except for bank official is authorized to carry out the activity.? REs shall ensure that the video recording is stored in a safe and secure manner and holds the date and time stamp along with a redact (blackout) on Aadhar Number, to ensure complete security to customer’s information.

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Author: Mufaddal Arthuna

Mufaddal Arthuna

Member since: Jan 02, 2020
Published articles: 2

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