Mumbai: The Reserve Bank on Monday amended its grasp route on know your customer to further leverage the video-based customer identification process (V-CIP) and simplify the process of periodic updation of KYC.
V-CIP is an alternate technique of customer identification with facial recognition and customer due diligence by an authorised official of the regulated entity by endeavor seamless, safe, dwell, informed-consent primarily based audio-visual interplay with the customer to receive identification data.
The RBI mentioned regulated entities might undertake V-CIP to perform Customer Due Diligence (CDD) in case of latest customer on-boarding for particular person clients, proprietor in case of proprietorship agency, authorised signatories and Beneficial Owners (BOs) in case of Legal Entity (LE) clients.
Among others, RBI regulated entities (REs), embody banks, NBFCs, and cost system operators.
REs can also undertake V-CIP for conversion of present accounts opened in non-face to face mode utilizing Aadhaar OTP primarily based e-KYC authentication, and updation or periodic updation of KYC for eligible clients.
The central financial institution has additionally specified sure minimal requirements which regulated entities may have to comply with whereas opting to undertake V-CIP.
As per the amended provisions, an RE ought to have complied with the RBI tips on minimal baseline cyber safety and resilience framework for banks.
“The technology infrastructure should be housed in own premises of the RE and the V-CIP connection and interaction shall necessarily originate from its own secured network domain. Any technology related outsourcing for the process should be compliant with relevant RBI guidelines,” it mentioned.
Also, the RE ought to guarantee end-to-end encryption of knowledge between customer machine and the internet hosting level of the V-CIP software, as per applicable encryption requirements. The customer consent has to be recorded in an auditable and alteration proof method.
It further mentioned every RE ought to formulate a transparent work stream and commonplace working process for V-CIP and guarantee adherence to it. The V-CIP process needs to be operated solely by officers of the RE specifically educated for this goal.
The authorised official ought to file audio-video in addition to seize {photograph} of the customer current for identification. The official can receive the identification data utilizing OTP primarily based Aadhaar e-KYC authentication, offline verification of Aadhaar for identification, KYC data downloaded from CKYCR or equal e-document of Officially Valid Documents (OVDs) together with paperwork issued by means of DigiLocker.
Further, the RE may have guarantee to redact or blackout the Aadhaar quantity.Â
