RBI launched the Aadhaar-based Video Customer Identification Process

Highlights:

  • The Reserve Bank of India (RBI) launched the Aadhaar-based Video Customer Identification Process (V-CIP) on 9 January 2020. 
  • The aim of the move is to allow banks and other lenders to remotely complete Know Your Customer (KYC) of customers on videos.
V-CIP: A fact file
  • RBI has allowed consent-based video-based KYC as an option to establish a customer's identity.
  • It is expected that it will make the process easier for banks and other regulated entities to adhere to the RBI's KYC norms.
  • It moves with a view to leveraging the digital channels for the Customer Identification Process (CIP) by Regulated Entities (REs).
  • RES has been encouraged to take the assistance of the latest available technology like Artificial Intelligence (AI) and face matching technologies, to ensure the integrity of the process and the information furnished by the customer.
  • This consent-based method will be an alternate method of establishing the customer's identity, for customer onboarding.
  • This approval by RBI was a long-standing industry demand for several years as many banks, especially digital NBFCs and fin-tech startups, as it will reduce the costs of physically reaching out to customers in remote locations where they did not otherwise have branches.