Money & Banking

KYC: RBI permits video-based customer identification process

Our Bureau Mumbai | Updated on January 09, 2020 Published on January 09, 2020

With a view to leveraging digital channels for Customer Identification Process (CIP) by Regulated Entities (REs), the Reserve Bank of India has decided to permit Video-based Customer Identification Process (V-CIP) as a consent-based alternate method to establish the identity for customer on-boarding.

In amendments, which come into force with immediate effect, to the Master Direction (MD) on Know Your Customer (KYC), the RBI said REs may undertake live V-CIP, which can be carried out by an official of the RE, for the establishment of an account-based relationship with an individual customer after obtaining his consent. This process has to adhere to certain stipulations.

The stipulations include the official of the RE performing the V-CIP recording video as well as capturing the photograph of the customer for identification and obtaining the identification information.

Banks can obtain identification information either by OTP-based Aadhaar e-KYC authentication or offline verification of Aadhaar. Further, the services of Business Correspondents (BCs) may be used by banks for aiding the V-CIP.

REs, other than banks, can obtain identification information only by carrying out offline verification of Aadhaar for identification. The RBI said the RE has to ensure to redact or blackout the Aadhaar number. The RBI said an RE needs to capture a clear image of the PAN card to be displayed by the customer during the process, except in cases where e-PAN is provided by the customer. The PAN details have be verified from the database of the issuing authority.


Live location of the customer (geotagging) needs to be captured to ensure that customer is physically present in India. The audio-visual interaction has to be triggered from the domain of the RE itself, and not from the third-party service provider, if any.

The V-CIP process has to be operated by officials specifically trained for this purpose. The activity log, along with the credentials of the official performing the V-CIP, has to be preserved.

REs must ensure that the video recording is stored in a safe and secure manner and bears the date and time stamp. The central bank said the official of the RE has to ensure that the photograph of the customer in the Aadhaar/PAN details matches with the customer undertaking the V-CIP, and the identification details in Aadhaar/PAN must match with the details provided by the customer.

The official of the RE has to ensure that the sequence and/or type of questions during video interactions are varied in order to establish that the interactions are real-time and not pre-recorded.

In case of offline verification of Aadhaar using XML (eXtensible Markup Language) file or Aadhaar Secure QR (quick response) code, it has to be ensured that the XML file or QR code generation date is not older than three days from the date of carrying out the V-CIP.

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Published on January 09, 2020
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