RBI norms for video KYC may be out in a month

BENGALURU: The Reserve Bank of India is likely to soon release video Know Your Customer (KYC) guidelines for financial services companies, following multiple conversations with industry representatives on remote onboarding of customers, according to three people privy to the development.

Industry executives said the norms could be out within the next month, although there was no independent confirmation about the timeline. “There have been meetings with the RBI on this matter and the regulator has been interested in a video-based KYC process. This will come in place of an inperson verification conducted through bank representatives,” said a senior banker in the know of the matter. The banker did not wish to be named as the matter is still under the regulator’s purview.

ET understands that the RBI could permit a video-based KYC in which a bank representative may be present at the back end to look into the video of the consumer in order to do a live test and authenticate details with the submitted documents. RBI is understood to be not keen on an AI-based video authentication, which many industry players had proposed, said another person in the know.

A few banks and lending institutions have already started preparing for the implementation of video KYC guidelines, the sources said. The process could be used for multiple products such as remote onboarding of savings account customers, credit cards and others, they said. “Many of the non-banking lenders are also in different stages of implementation, with a few of them still in the design stages,” one of the sources said.

Further, the banker quoted above said there could be some relaxation on the Rs 60,000 cap which the regulator has with respect to credit that can be extended to customers onboarded through remote KYC. “But, overall, what this will do is remove the feet-on-street model and help us build a truly digitised banking offering, which will help in overall financial inclusion,” he said…..Read more>>