Everything You Need To Know About Aadhaar-Based Video-KYC Process To Establish Identity In Banks

It was 9th January 2020, when the RBI (Reserve Bank of India) approved Aadhar based video authentication process as an alternative to the e-KYC process. Supreme Court’s judgment on this method and its use by financial and other non-financial institutions has now pushed the manual verification process at the bay.

According to one recent report, it’s been noted that there is an upturn of 40% in the new customer acquisition since this KYC process has come to play.

RBI (Reserve Bank Of India) has updated its rules and regulations for e-KYC under the prevention of money laundering act, 2005. Did you know video KYC is recommended with Apple FaceTime or Google Duo? Yes, it is true! In fact, India and America is now the official first few countries to roll out the video KYC (Know Your Customer) process for financial and other non-financial institutions.

Lately, after realizing the whole COVID-19 situations, many banks have even launched their own video KYC facility, to make a sign up new customers with ease and efficiency.

Since now there is approval on the use of video KYC process, businesses irrespective of its domain and size, can now use the digital modes of identification and can use these technologically advances to onboard their new customers and to ensure they are being completely compliant with government rules and regulation.

In this write-up, we will outline the less-known yet important things you must know before implementing this smart and agile video id KYC process.

Video KYC Process

Well, this video KYC process has come up as an alternative to a full in-person KYC process. This is the process that customers are required to complete before they avail the services of banking institutions, such as getting loans and new account openings. Bur, in this video id KYC process, customers are still required to submit their identity plus address process to avail continued and uninterrupted services. 

The best part about this addition is – the newly permitted KYC process has now replaced the conventional KYC (Know Your Customer) process completely, with customers no longer need to follow and go to the official buildings to submit their documents in-person.

As almost each one of us is aware of the fact that identity theft is on the steep rise today, across the globe. At these impulsive times, video id KYC is extensively used to eliminate and cut all money laundering related and other prohibited activities. Earlier, KYC was a bit costly affair to businesses as they have to put up with the traveling expenses of the agents for the purpose of getting verified.

With the online KYC (Know Your Customer) process at disposal, businesses and people can’t just save bucks on costs but can also fasten the complete on-boarding process, saving them time and reducing the customer drop-outs by almost 30%.

Digital Video KYC Identification Process

Typically, the digital video-based KYC identification process has the below-mentioned steps included in it –

1. A customer has to visit the organization’s website and submit the application to get KYC done online.
2. Via a client portal, a customer has to enter his personal information like contact number, email address, residential information.
3.   A mobile number verification is done then by sending an OTP to the email address submitted by the person.
4. Once the email address and mobile number is verified, the customer has to submit his or her Aadhar number.
5. An online video call can be initiated anytime, via a link, or can be scheduled by a person itself, based on his time slot preference.
6.  An IP address of the person is checked to ensure there’s nothing wrong till now.
7. An assigned agent is then going to cross-check all the details submitted by an applicant and verify it for further decision making.
8. The agent can ask a person to show his proofs at any given time, and an OCR recognition match is done to ensure everything is moving in the right direction.
9. At any given point of time, the photograph of a person will be captured to match it with photos on ID proofs further.
10. Based on the overall online video call thing, the agent is going to decide whether he will accept the application or reject it.

      Well, this is how the whole video id KYC process takes place. It is just a matter of a few minutes, and the person will get verified from the comfort of their homes only. So, it won’t be wrong at all to say that this KYC process has come up as a great addition to society.