The Reserve Bank of India's (RBI) notification, dated January 9, 2020, marked a pivotal shift in customer identification. It officially recognized the Video-Based Customer Identification Process (VCIP). This step introduced a fully digital and remote method for banks and Regulated Entities (REs) to collect Know Your Customer (KYC) information. It greatly simplified the onboarding and authentication process. We will explore the steps in the VCIP. They are in the RBI's amended KYC Master Direction. We will also look at the benefits for financial institutions and customers.
The Advantages of RBI’s VCIP Notification
The RBI's decision to implement VCIP has substantial implications for India’s financial sector. By enabling remote customer verification, the notification offers several advantages:
- Cost Efficiency: Financial institutions can reduce operational costs associated with in-person KYC processes.
- Enhanced Customer Convenience: Customers can now verify their identity online. This makes the process more accessible.
- Improved Financial Inclusion: This system helps include more people in finance, especially in remote areas.
- Scalability: Financial institutions can scale their operations more efficiently by leveraging the fully digital VCIP framework.
Now, let’s break down the steps required for banks and REs to conduct VCIP.
Steps in the RBI-Approved VCIP Process
The RBI notification says banks and REs must follow a specific process to authenticate customers using VCIP. These steps ensure compliance, security, and authenticity throughout the process:
1. Consent and Initiation
The process begins with the customer’s consent. The bank official must obtain the customer’s agreement to proceed with the video-based identification
2. Video and Photo Capture
A live video call is initiated, during which the official captures a real-time video and photograph of the customer. This step ensures the customer's presence and participation in real-time.
3. Aadhaar Verification
For banks, the customer’s Aadhaar card is authenticated using Aadhaar-based verification methods. For other regulated entities, offline Aadhaar verification is utilized.
4. Geo-Tagging
The system uses geo-tagging technology to capture the customer’s real-time location. This adds security by ensuring the customer is in the allowed area during the interaction.
5. Face Matching and Document Verification
The official ensures that the face captured during the video call matches the image on the customer’s PAN or Aadhaar card. The rest of the details on the PAN or Aadhaar card are also verified.
6. Live Audio-Visual Interaction
To ensure that the video is live and not pre-recorded, the official engages in a live interaction with the customer. The official may ask the customer questions and request additional proof, ensuring the legitimacy of the process.
7. Completion of Video KYC
Once all the verification steps are completed, the official concludes the video KYC process.
8. Video Storage for Future Reference
The recorded video is securely stored, along with a timestamp, for future reference. This video can be reviewed as needed, particularly for auditing or regulatory purposes.
By following these steps, VCIP digitizes customer authentication. It also ensures the process is secure and complies with RBI's strict guidelines.
How Our Video KYC Solution Aligns with RBI Guidelines
Our Video KYC solution covers every step of the RBI's VCIP process. It provides a secure, fully digital way to onboard customers. The system has advanced, AI-driven features. They improve the experience for customers and officials. They ensure a smooth verification process.
Features of Our Video KYC Solution:
- AI-Driven Authentication: Our system uses AI to verify customer documents. It matches faces to their identity documents.
- Real-Time Geo-Tagging: Our platform verifies the customer's location during the video call. This ensures compliance with geo-tagging rules.
- Seamless Video Interaction: The live interaction is recorded in real time. This ensures that the customer is present, not using pre-recorded footage.
How Our System Works
We have designed a user-friendly and secure interface that simplifies the entire VCIP process. Here is a detailed walkthrough of how our solution functions:
1. Initiation of Video Call
The official sends an invite to the customer, who can access the link via an internet browser on any device. The customer consents to proceed, and the video interaction begins.
2. Identity Verification
During the video call, the official asks the customer to display their PAN or Aadhaar card. The system automatically captures and verifies the information. It compares the real-time video with the image on the documents.
3. Geo-Tagging
The system checks the customer's location in real-time. This ensures the interaction meets geographic requirements. The latitude and longitude are tracked automatically.
4. Audit and Verification
The official reviews the video interaction and the information provided by the customer. Once satisfied with the accuracy of the data and the live interaction, the official can approve or reject the KYC process.
5. Storage and Compliance
After completion, the recorded video and data are securely stored. This ensures compliance with RBI regulations.
Seamless Integration and Scalability
Our Video KYC solution can integrate with many business processes. These include electronic signatures and other verification systems. It lets financial institutions verify customers quickly and cheaply. It is a game-changer for the industry.
Benefits of Our Solution:
- Compliance: Fully adheres to RBI’s VCIP guidelines.
- Efficiency: Reduces the time and cost associated with manual KYC processes.
- Security: It protects customer data with strong encryption and storage.
Conclusion
The RBI’s VCIP process is a big step in India's digital finance transformation. Our Video KYC solution meets these guidelines. It provides a secure, efficient, and fully digitized onboarding experience. We use advanced tech to help financial firms cut costs, boost convenience, and scale operations.