RBI amends KYC norms, allows banks to use V-CIP

The RBI has 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.

The Reserve Bank said it decided to permit video based Customer Identification Process (V-CIP) as a consent based alternate method of establishing the customer's identity, for customer onboarding with a view to leveraging the digital channels for Customer Identification Process (CIP) by regulated entities (REs).

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. Last year, the government had notified amendment to the Prevention of Money-laundering (Maintenance of Records) Rules, 2005. As per the circular, the reporting entity should capture a clear image of PAN card to be displayed by the customer during the process.

It further said that the official of the reporting entity should ensure that the photograph and the identification details in Aadhaar/PAN should match with the details provided by the customer. It also said that Live location of the customer (Geotagging) shall be captured to ensure that customer is physically present in India. #casansaar (Source - NewsOnAir)