Video KYC was introduced by the Reserve Bank of India (RBI) to enhance the customer identification process while opening a bank account. Either KYC Registration Agencies or Micro-ATMs initiate this process, and it’s an additional 10-minute documentation procedure that helps banks improve their Know Your Customer service. These days, any person interested in being a part of a company will be required to pass a KYC verification process. The process includes:
- Providing documents and information about an individual’s history.
- Their affiliations with companies and organizations.
- Verifying the source of funds.
There are many ways that people can submit this information, though, which can be both an advantage and disadvantage for them depending on the situation.
Also Read: What Is eKYC? Portal, Online, Meaning, Documentation
What is Video KYC?
Video KYC is a technology that allows you to submit your documents in the video. This enables companies to receive accurate, verifiable information quickly and easily. For example, suppose a company chooses to accept people who have been verified through video KYC. In that case, they will process the documents faster than they would if they were submitted through standard methods – thus saving both time and money.
Need for Video KYC:
Companies are required to check every person who is involved in their business in some way. For example, they may have to provide passports, driving licenses, utility bills, etc. These checks help companies verify the information a candidate has provided and prevent fraud from happening.
A variety of online companies use video KYC for different reasons. While some may use it to improve the overall quality of their services, others may want to save time and money by verifying information quickly and easily. Many benefits come with video KYC, which can be helpful when considering becoming a customer of a company.
Why Significance of Video KYC:
In most cases, companies must collect the documents themselves, scan them, and upload them onto their website. This process won’t take long if one person submits a small number of copies. Still, for businesses requiring many employees to submit their documents, this can be extremely time–consuming, costing the company money. Video KYC allows you to offer all of your information, making it easier for companies to receive all necessary documentation without losing any time or money.
Also Read: Address Update On Aadhaar Card & Verifying Status Online
Benefits of Video KYC
The most significant benefit of video KYC over other types of verification is that it can significantly reduce fees and general verification periods. By using video KYC, companies can be sure that all of their clients have been adequately vetted before starting working with them. Other benefits of Video KYC are:
1) Video KYC is more efficient – Some fewer people have to be verified
When many documents must be submitted, verification periods can stretch for months. When someone offers one copy to the company, they may not need to repeat that process. When using video KYC, this is no longer the case, as the person’s entire application can be verified in minutes.
2) Video KYC is more secure – With this type of verification method, there is less room for error and false information. In addition, as each document is uploaded individually, it cannot be forged or faked later on by someone who has access to all parts of the process.
3) Video KYC is more accurate – It is easier for companies to do the verification themselves without relying on third-party services. This saves them money and ensures that the information received is far more accurate and up-to-date.
4) Video KYC can be completed faster – When someone provides their documents through video KYC, it takes less time than usual methods as no physical forms need to be sent or collected to submit them.
5) Businesses can hire people faster – Having all of the necessary documents in place and verified can help companies speed up the entire hiring process if they have to fill several jobs quickly.
6) Video KYC helps companies avoid fraud – Because all of the documents are submitted through video, there is no way that someone can pass off a fake copy without getting caught.
Also Read: Know About Pan Card Correction
What Are The Guidelines For Video KYC?
Before a company can begin using video KYC, it will need to have a company that verifies people’s identities and processes the documents. Various companies provide this service, and their verification process may vary depending on the business. The aim of using this type of technology is to provide accurate information – which allows companies to complete the verification in far less time than it would take using traditional methods.
There are specific guidelines that the video KYC service provider must follow to ensure that the process is legal, transparent and efficient. Fairness and transparency are essential here, especially when accepting information from specific groups such as minors, criminals or victims.
Companies that use this Tech:
Many online companies utilize video KYC to verify their employees or customers. Some of these businesses include Uber, Paytm, and Amazon. All of these companies have a strict policy regarding customer relations and confidentiality of data, which is why they choose not to send personal documents over email or fax – with video KYC being the best solution for their needs.
Companies can implement video KYC on their website, where all of their employees fill out and submit the documents on-site. The customers will then be able to check their details directly through their virtual application. Then, the verification can occur upon submission of a few documents – with no need for any other personal information to be revealed.
Also Read: Aadhaar Card Download – Complete Guide To Download For E-Aadhaar
Case Studies:
- Paytm is a popular payment platform that allows people to pay their mobile and online bills. When customers register for Paytm, they need to verify their identity through video KYC. This is done by uploading a passport and driving license and other documents such as utility bills, bank statements, etc. After sending in the required scans, customers can check the details that have been submitted against the pieces they already have on their profile.
- Amazon is another company that uses video KYC to verify customers’ identities before purchasing things on their website. When someone orders something from Amazon’s website, they will be sent an email to be asked to upload supporting documents as proof of identity.
Conclusion:
Video KYC eliminates the time and expense of physical document submission and allows companies to verify customers’ identities without sending or collecting any information physically. This technology has many benefits and is a great way to streamline the verification process, improving efficiency, security and accuracy. As a result, the video KYC market is set to increase in the coming years – due to its ability to provide a faster alternative for businesses looking for an efficient solution.
