In this era of Corona epidemic, the Reserve Bank has given a big relief in the Know Your Customer (KYC) rules.
In this era of corona epidemic (covid19 pandemic), the Reserve Bank has given a big relief in the Know Your Customer (KYC) rules. The Reserve Bank has given permission to update the KYC through video. Through this, if a bank customer wants to get his KYC done or update, then he can make the video through the Customer Identification Process (V-CIP).
Actually, the Reserve Bank of India (RBI) has amended the Master Instructions issued regarding KYC. This amendment was done to make the most of the customers’ video-based identification process (V-CIP) and to simplify the process of updating KYC periodically. V-CIP is an alternative way of identifying the bank customer in which the customer It is identified by looking at the face of. The authorized officer of the unit under the Reserve Bank of Regulations examines the customer. Under this, information is collected on the basis of audio-video interaction with the customer without any hitch, life and consent.
The Reserve Bank has said that the individual custodian under its regulation can adopt the V-CIP process to identify its owner in case of proprietorship firm, its authorized signatory and beneficiary owner in case of law firm.
These units will come under RBI regulation
The regulations of the Reserve Bank include banks, NBFCs and payment system operators. It states that these companies can also use the V-CIP process to convert non-opened accounts into face mode. For this, they can use Aadhaar OTP based e-KYC authentication. Also, it can also be used to update KYC for eligible customers from time to time.
RBI has also set certain minimum standards for units availing the V-CIP facility. According to the amended provisions of the central bank, RBI’s regulated entities will have to follow the guidelines issued on cyber security and the framework set for banks.
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