The RBI said the KYC images should be dependent on approval. In other terms, banks will need to take customer consent for KYC dependent on video.
Aadhaar-based Video Customer Identification Process (V-CIP) has been launched by the Reserve Bank of India (RBI) to allow banks and other borrowers to remotely complete KYC of clients on video. This software can be used by borrowers as an alternative to the current e-KYC system.Under the Prevention of Money Laundering (Maintenance of Records) Rules, 2005, the central bank revised its rules to incorporate V-CIP.
In a circular on Thursday, RBI stated that "... in order to leverage the Customer Identification Process (CIP) digital channels by Regulated Entities (REs), the Reserve Bank decided to allow Video-based Customer Identification Process (V-CIP) as an alternative consent-based method for the identification of the customer on board."
The RBI said the KYC video would be dependent on agreement. In other terms, banks will need to take customer approval for KYC dependent on images. Through using digital technology, the new feature would make it easier for banks and other controlled organizations to conform to the RBI Know Your Customer (KYC) requirements.
In Section 3 of its Master Direction on KYC of 25 February 2016, the central bank changed the definition of "Online KYC." It is now described as "capturing the customer's live image and officially legitimate document or Aadhaar's proof of possession; Where verification of the latitude and longitude of the location where such live photograph is taken by an authorized officer of the Reporting Entity (RE) can not be carried out offline, as provided for in the Act.
The circular said REs (reporting entities) would record video and capture consumer photos for verification and collect identity details as shown below.
Banks may use Aadhaar e-KYC authentication based on OTP or Aadhaar Offline Verification for identification purposes. In addition, banks may use Business Correspondents (BCs) services to assist the V-CIP.
Offline authentication of Aadhaar for recognition can only be carried out by REs other than banks.
The reporting entity (RE) should, according to the circular, capture a clear image of the PAN card that the customer will display during the process, except in cases where the customer provides e-PAN.REs will insure that the customer's image in the Aadhaar / PAN information suits the V-CIP customer undertaking and that the Aadhaar / PAN identity details suit the customer's data.
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