Wednesday, August 26, 2020

Video KYC: All about the new customer on-boarding process of banks

All about the new customer on-boarding process of banks

Banks have always been one of the pacesetters when it came to adopting innovative methods to improve the experience of their customers. In January 2020 the KYC guidelines were amended by the RBI. This was to include an additional method for KYC which is VCIP or Video-Based Customer Identification Process. Most of the banks were all set for this change. According to the guidelines set by the RBI, the KYC process is mandatory for customer onboarding and banking.

Earlier, a prospective customer had to visit the branch in person to fill and submit the forms and required documents to open an account in that bank. The account could also be opened if a representative from the bank visited their home and collected all the necessary documents and signature, in person. 

Later, online bank accounts could be opened using the Aadhaar details of the individual. However, for full-fledged banking, it was mandatory to do paper documentation as well. Now, the RBI has permitted customers to open online bank accounts. They are required to do a live video call with the officer designated by the bank. During the Video KYC, they have to submit their proof of identity and the necessary documents, digitally.

The Process of Video KYC

Video KYC is the same for all banks and they have to stick to the guidelines set by the RBI.  Follow the steps given below to do Video KYC,

Log in to the official website of the bank or the bank’s mobile app.

Fill in the online form with your details and attach a photograph.

Verification using OTP.

Give consent to the bank to use your Aadhaar details.

Provide your Aadhaar details along with PAN number.

Give access to the location of your phone.

According to the RBI, it is mandatory to do geo-tagging to stop people who live outside India from opening an online account.

The bank officer/KYC official starts a video call with the prospective customer (Your documents must be ready).

The authenticity of the individual has to be established through liveliness checks, facial recognition, and by authenticating the documents and signature.

On successful completion of the entire process, the customer gets approval to open an account online.

Is Your Aadhaar Mandatory For Video KYC?

Yes, it is. Your Aadhaar number is mandatory to do Video KYC.

Aadhaar number gets verified through OTP.

The OTP will be sent to the mobile number linked to your Aadhaar.

The physical copy of your Aadhaar is not necessary.

In case the bank officer requests you to produce your Aadhaar card in between the call make sure you hide the four digits in the middle.

Aadhaar eKYC can also be done to open online accounts.

To do Aadhaar based eKYC you need to give consent to the bank.

Aadhaar eKYC is done through Aadhaar authentication.

The Benefits Of Video KYC

Video-based KYC has several benefits attached to it. This is why several banks have started adopting this technique for customer onboarding.

Customer onboarding can be done remotely.

KYC can be done in a few minutes.

Quick onboarding of customers.

More convenient for customers. (It can be done without leaving the comforts of their home/workplace).

Due to the COVID 19 pandemic and the total lockdown imposed by the Indian government, there has been a delay in the launch of video-based KYC. However, now most of the banks have started implementing Video KYC for the onboarding of new customers.

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]