Thursday, August 13, 2020

Bio-metric video eKYC launched for securities account on-boarding by CDSL Ventures

Bio-metric video eKYC launched for securities account on-boarding by CDSL Ventures

In a video-based eKYC, the individual can get their KYC done through a video call without having to leave their office or the comforts of their home. Unlike the traditional means of KYC, the authorized verifier does a liveliness check for face recognition and establishes the location of the individual using the geographical location coordinates. The authentication of the documents is also done by the verifier.

The process of video eKYC has been approved for several financial and other services in India including the opening of a bank account. CDSL Ventures, a leading depository, has been recently authorized by the UIDAI (Unique Identification Authority of India) to conduct eKYC through Aadhaar authentication. The biometric information stored in the Aadhaar database will be used to carry out Aadhaar based eKYC. CDLS Ventures received the approval from the UIDAI in July 2020.

CDSL Ventures is a fully-owned subsidiary of the Central Depository Services (India) Limited (CDSL). In May 2020, the CDSL was one of the organizations designated by SEBI as a prospective Aadhaar eKYC provider. 

  • CDLS Ventures can now conduct Aadhaar based eKYC using the biometric information on the Aadhaar based digital ID system.
  • They’ve received the approval and have been authorized by the UIDAI.
  • More than 2.4 crore Demat accounts of investors from all over India is maintained and serviced by this depository.
  • This firm has now been approved as one of the local AUA ( Authentication User Agency).
  • CDLS Ventures is also accepted as the KUA (eKYC User Agency).
  • The KUA allows the Indian residents to verify their identity to open accounts for financial services.
  • To open securities account prospective customers now have the option to submit their biometrics voluntarily to perform video eKYC.
  • For the smooth opening of financial accounts online, CDSL also has plans to provide this service to distributors of mutual funds/intermediaries.
  • SEBI (Securities And Exchange Board of India) permits Mutual funds distributors and intermediaries who have registered themselves to contract services for authentication from those companies that have the approval of UIDAI.
  • The intermediaries must register themselves with the UIDAI as sub-eKYC User Agency (KUA’s).

Aadhaar based video eKYC

Video-based eKYC can be done using the Aadhaar data of an individual. This is done through Aadhaar authentication which is verification based on the Aadhaar information. Video eKYC check may also be done using a live video of the individual and getting it matched to an OVD (Officially Valid Document) and the geographical location coordinates. Documents like the PAN card and OVD's are mandatory for video-based eKYC.

Major Benefits of Video-Based eKYC

Video-based eKYC for onboarding of a financial/securities account has several benefits attached to it.

  • Since video-based eKYC is paperless it is monetarily beneficial.
  • The Economic Times has reported that the Aadhaar based eKYC has brought down the cost per KYC from Rs.150 to Rs.20.
  • The entire process is secure and seamless.
  • Remote access for video-based eKYC: you don't have to visit the customer in person.
  • A wet signature which is mandatory for digital KYC is not required for video eKYC check.
  • Extremely fast which makes it convenient.
  • Reduced amounts of fraudulence.

Earlier this year a biometric service was launched under the partnership of ID R&D and Tech5 to perform video eKYC for opening new financial accounts. It was in July 2020 that the CDSL Ventures received approval from the UIDAI to carry out Aadhaar based video eKYC authentication for onboarding new accounts online for financial services.

For more information contact us.

We, Finahub, are experts in Aadhaar related products and services like eSign, eKYC, Authentication, etc. If you want to know how your enterprise can start using it, please give us a call  @ 0484 2388285 or email us at [email protected]m