The Reserve Bank of India(RBI) has amended its grasp path to know your customer to additional 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 based mostly audio-visual interplay with the customer to acquire identification info.
The RBI mentioned regulated entities could undertake V-CIP to hold out Customer Due Diligence (CDD) in case of recent 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 fee system operators.
REs may undertake V-CIP for conversion of present accounts opened in non-face to face mode utilizing Aadhaar OTP based mostly e-KYC authentication, and replace or periodic updation of KYC for eligible clients.
The central financial institution has additionally specified sure minimal requirements which regulated entities must observe 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 its 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.
Here’s what will be finished underneath V-CIP:
- The Central Bank has mentioned that regulated entities could undertake V-CIP to hold out Customer Due Diligence (CDD) in case of recent 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.
- The regulated entities or REs may undertake V-CIP for conversion of present accounts opened in non-face to face mode utilizing Aadhaar OTP based mostly e-KYC authentication, and updation or periodic updation of KYC for eligible clients.
- The banking watchdog has additionally specified sure minimal requirements which regulated entities must observe whereas endeavor KYV underneath the V-CIP process.
- The RBI regulated entities (REs) embody banks, NBFCs and fee system operators amongst others.
Also, the RE ought to guarantee end-to-end encryption of knowledge between customer units and the internet hosting level of the V-CIP utility, as per applicable encryption requirements. The customer consent must be recorded in an auditable and alteration-proof method.
It additional mentioned every RE ought to formulate a transparent workflow and normal 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 skilled for this objective.
The authorised official ought to report audio-video in addition to seize images of the customer current for identification. The official can receive the identification info utilizing OTP based mostly 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 way of DigiLocker.
Further, the RE must guarantee to redact or blackout the Aadhaar quantity.
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