The Reserve Bank of India in its Circular dated 9th January, 2020 has brought in amendments to the earlier Master Direction on KYC issued on 25th February 2016 and also notified amendment to the Prevention of Money-laundering (Maintenance of Records) Rules, 2005. The Reserve Bank has decided to permit Video based Customer Identification Process (V-CIP) as a consent based alternate method of establishing the customer’s identity, for customer on boarding.
Key Highlights from the Circular:
- The customers for the purpose of Customer Due Diligence CDD) process, shall submit Aadhaar number or Officially Valid Document (OVD) or proof of possession of Aadhar number and Permanent. Account Number or the equivalent e-document thereof or Form No. 60 as defined in Income-tax Rules, 1962; and such other documents.
- Besides, the RBI also allowed banks and other lending institutions regulated by it to use Video-based Customer Identification Process (V-CIP) for the KYC process.
- Under the process of V-CIP, The reporting entities (Res) may undertake live V-CIP, for establishment of an account based relationship with an individual customer, after obtaining his informed consent.
- The Reporting Entity shall record video and capture photograph of customer present for identification and obtain the identification information by either using OTP or offline verification and Live location of the customer shall be captured to ensure that customer is physically present in India.
- The official of the RE shall ensure that photograph of the customer in the Aadhaar/PAN details matches with the customer. All accounts opened through V-CIP shall be made operational only after being subject to concurrent audit, to ensure the integrity of process. REs shall ensure that the video recording is stored in a safe and secure manner.
Click here to read the Notification.