
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.
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.
Video KYC Account Opening Process
The Video KYC Account Opening Process: A Streamlined Approach to Banking
The Video KYC (Know Your Customer) account opening process is a digital innovation that allows individuals to open bank accounts remotely by verifying their identity over a live video call. It has revolutionized customer onboarding by providing a secure, convenient, and paperless alternative to traditional methods.
Key Steps in the Video KYC Process:
- Initiating the Application:
The customer begins by applying for an account online, typically through a bank’s website or mobile app. Basic details like name, contact information, and desired account type are entered. - Scheduling a Video Call:
Once the application is submitted, the customer can schedule a video call with a bank representative. This call is usually initiated through the bank’s platform and can be done in real time or by appointment. - Document Verification:
During the video call, the customer is asked to present government-issued identity documents, such as an Aadhaar card, passport, or driver’s license. The bank representative verifies the authenticity of the documents in real time, ensuring compliance with regulatory requirements. - Face Matching and Verification:
The representative matches the customer’s face with the photo on their submitted ID document. Facial recognition technology is often used to enhance accuracy and security in this step. - Geo-Location and Liveliness Check:
To prevent fraud, the system may also perform geo-location checks and ensure the customer is physically present during the call by using live detection techniques. - Completion and Approval:
If all the provided information and documents are validated, the account is approved. The customer receives their account details via email or SMS, and the account is ready to use.
Benefits of Video KYC:
- Convenience: Customers can open accounts from anywhere, saving time and effort.
- Speed: The process can be completed in minutes, significantly reducing the traditional onboarding time.
- Cost-Effective: It reduces the need for physical branch visits, paperwork, and manual processing.
- Security: Enhanced security measures such as live face matching and geo-location checks help prevent identity fraud.
With increasing adoption by banks, Video KYC is becoming a standard practice in the banking industry, offering a seamless and customer-friendly experience.
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.
FAQs
What is the process of zero balance account opening online video KYC?
A zero balance account can be opened online through Video KYC (Know Your Customer) verification. In this process, the customer submits basic details and documents like PAN and Aadhaar online. The bank representative conducts a live video call to verify the customer’s identity, eliminating the need for physical visits. This process is quick, convenient, and allows customers to open accounts without maintaining a minimum balance.
How Many Banks are Providing Video KYC in India?
Here is the list of banks that are providing video KYCs
- Central Bank of India video kyc
- UCO Bank video kyc
- Bank of Baroda video kyc
- SBI video kyc
- IDFC FIRST Bank video kyc
- HDFC Bank video kyc