A RBI Committee has recommended in its report using Video KYC – via actual video calls – to replace current KYC and Aadhaar KYC norms. This process is intended to replace any need for physical presence of customers, says the committee’s report. The committee is led by former SEBI chairman UK Sinha, and was set up to look into the problems of domestic micro, small and medium enterprises (MSMEs).
How the Video KYC will be done
Video KYC will be carried out via Google Duo for Android users and Facetime for iPhone users, after users sign up for it on a company’s app or website, and submit their identity and address proof. During the video call, a person authorised by the company will show his/her valid ID card. The individual/customer will then show their original documents – identity and address proof – and reads out their name as it appears on the ID proof.
- The company’s executive will then verify the documents and upload the footage for a final verification of ID and address proof by the company’s team.
- Upon successful verification, the customer would be notified of the same.
Within the past few days, mobile wallet companies have given inputs to the RBI on video KYC as a possible way to eliminate the physical leg of the current KYC process. After the RBI issued its guidelines on KYC last year, several wallet firms have tied up with retailers and other companies to ensure in-person KYC of users, but that has turned out to be expensive. Before that, in February, industry body Digital India Collective for Empowerment (DICE) and Digital Lenders Association of India (DLAI) had approached the RBI requesting for regulatory approval from the RBI and Finance Ministry for video verification as a form of digital KYC.