Exploring Video KYC in the Banking Sector: A Comprehensive Guide
As the financial landscape has evolved over the years, the Reserve Bank of India (RBI) has taken a significant step in modernizing the customer identification process through the Video KYC. This method allows banks to authenticate customer identities using video-based technology, offering numerous benefits and simplifications over traditional methods. This article will delve into how the Video KYC process works and the advantages it brings to both customers and organizations.
Understanding the Video KYC Process
The RBI has provided the necessary guidelines and regulations to allow banks to implement a video-based Know Your Customer (KYC) process. This process involves a live video call between a KYC expert and the end-user to verify identity documents and perform liveness detection, ensuring the authenticity of the customer.
Key Elements of the Video KYC Process
The Video KYC process requires the following components:
User: The individual seeking to be identified and authenticated. KYC Expert: A professional responsible for verifying the customer's identity through a live video call. Stable Internet Connection: A reliable internet connection to support the video consultation. Computer: A device with a camera and microphone to facilitate the video call and document scanning.How the Process Unfolds
During the Video KYC process, the KYC expert contacts the user for a live video call. The user uploads required documents to the system and provides additional information through a video call. The KYC expert verifies the user's identity by:
Asking routine questions to confirm the user's identity. Comparing the person on the document with the person in the video call to ensure they are the same individual. Taking consent from the user to record the entire KYC process for compliance reasons.Benefits of Video KYC for Customers and Organizations
The adoption of Video KYC by the RBI has brought significant advantages to both customers and organizations:
Convenience for Customers: Users can get themselves verified without leaving the comfort of their homes, making the process more convenient and cost-effective. Speed: Video KYC is faster compared to traditional methods that require in-person visits or manual document verification. Cost-Effectiveness: Organizations benefit from reduced operational costs as fewer employees are required to handle the KYC process. Compliance with Social Distancing Norms: In the wake of the global pandemic, Video KYC aligns with social distancing guidelines, providing a more safe and hygienic method of identity verification.How Video KYC Works: A Technical Breakdown
Video KYC is a form of online KYC process approved by the RBI. It involves the live identification and verification of customers as per their convenience using a video feed and documents. In the Video KYC process, the identification check is performed through a live video feed provided by the customer. Depending on the assisted or non-assisted KYC, additional details and information like address and contact are verified either through verbal communication or by using scanned copies of documents.
Video KYC leverages Artificial Intelligence (AI) to combat identity thefts, comparing the user's face with the image on the document. Blink tests and other methods are used to ensure that the video feed is not a pre-recorded one.
Conclusion
The RBI's approval of Video KYC has ushered in a new era of customer identification in the banking sector. By simplifying and speeding up the verification process, Video KYC ensures that both customers and organizations can adhere to KYC regulations without the traditional hassles. As the world continues to evolve and adapt to new technologies, Video KYC is poised to become a standard practice in the financial industry.