RBI gives new year present to citizens: Create bank account with a video call

The Reserve Bank of India (RBI) has decided to permit the video-based Customer Identification Process (V-CIP) as a consent-based alternate method of establishing the customer’s identity, for customer onboarding. The demand for such a facility mainly came from tech-savvy new-age banks and prepaid payment instrument issuers.

Crux of the Matter

1. The government started the reformation process by amending the Prevention of Money Laundering Rules along with ‘know-your-customer’ (KYC) norms.

2. The RBI panel had observed how for conducting even e-KYC, the customer has to be physically present and a decent amount of data handling is required.

3. In video-KYC via Google Duo or Apple FaceTime, the whole process can be done simply through a video chat where the customer can display documents.

4. For video-based customer authentication, PAN number and Aadhaar number will be mandatory. Live location of the customer in the form of geotagging shall be captured to ensure that customer is physically present in India.

5. This is a giant leap for digital banking as such a facility is available only in few countries with Germany as the market leader.

6. Experts suggest that it’s more than likely that the government will have to develop such an app specifically for video-KYC whose servers will be located onshore.

Curiopedia

RBI or The Reserve Bank of India is India’s central bank, which controls the issue and supply of the Indian rupee. RBI is the regulator of entire Banking in India. RBI plays an important part in the Development Strategy of the Government of India. It regulates commercial banks and non-banking finance companies working in India. It serves as the leader of the banking system and the money market. The RBI carries out India’s monetary policy and exercises supervision and control over banks and non-banking finance companies in India. It was set up in 1935 under the Reserve Bank of India Act,1934. RBI is a member bank of the Asian Clearing Union. The general superintendence and direction of the RBI are entrusted with the 21-member central board of directors: the governor; four deputy governors; two finance ministry representatives. More Info

Curated Coverage

1. The Hindu – Now, open bank account over video chat

2. Business Standard – RBI approves Aadhaar-based video authentication as alternative to e-KYC

#Bankaccount #RBI #Videocall