During the COVID-19 pandemic, board meetings, family get-togethers, new product launches, etc. are happening via video calls. Banks are not far behind in adopting the video platform technology to onboard new customers and for completing the Know Your Customer (KYC) process. The KYC process is mandatory for full-fledged banking, as per Reserve Bank of India (RBI) guidelines.
Recently, the Kotak Mahindra Bank introduced the video KYC process to open a full-fledged Kotak 811 savings account. Soon, ICICI Bank too rolled out video KYC for new customers looking to open a savings / salary account, or wanting to take a personal loan from the bank. The facility is also extended to customers while applying for the ‘Amazon Pay ICICI Bank Credit Card’. The bank is shortly going to extend the ‘Video KYC’ facility to other variants of credit cards, home loans and retail products.
Shanti Ekambaram, Group President-Consumer Banking, Kotak Mahindra Bank says, “Signing up new customers through video KYC can prove to be a game changer where customer verification is completed from the comfort of one’s home or office, without the need for a physical interaction.”
A gradual shift to video KYC
Earlier, to open a bank account, customers had to either go to a branch to fill up forms or have an agent visit their home to collect documents and signatures. In some cases a basic bank account could be opened online through Aadhaar, but for full-service accounts, physical paper documentation was mandatory.
Since January, RBI has permitted digital account opening via video KYC process. It allowed customers to get on a live video call with a bank officer and submit proof of identity digitally. However, the launch of video KYC got delayed by banks due to the COVID-19 pandemic and nationwide lockdown.
Let’s discuss the process of video KYC, and the precautions customers must take.
What is the video KYC process?
The process for video KYC remains the same for banks as per the RBI guidelines. You need to visit the bank’s website, share personal details, give consent to the use of Aadhaar for verification and enable access to the phone’s location for video KYC. The banking regulator has insisted on geo-tagging the location of a customer to prevent people outside India from opening a bank account. Once a bank executive completes the conversation with the customer over a video, a full-fledged bank account gets opened.
“Armed with a digital device, PAN card, a pen and paper, a customer can complete his/her KYC process in a matter of few minutes. We believe that the ‘Video KYC’ facility helps customers and lenders alike to forge a new banking relationship quickly and safely, with zero physical contact in these pandemic times,” says Anup Bagchi, Executive Director, ICICI Bank.
Is Aadhaar required for video KYC?
Yes. Aadhaar number is required for video KYC. Your Aadhaar number will be verified through a one-time password (OTP) received on your registered mobile number. You don’t need to carry your physical Aadhaar card during the Video KYC process.
“Suppose the bank officer asks for Aadhaar during the video KYC process, you must hide the middle four or six digits, so your full Aadhaar number is not visible and it cannot be misused by anyone,” says Murali Nair, President of Zeta's Banking Business.
In which platform is the Video KYC process carried out?
The video KYC is carried out only via a bank’s website or its mobile application. You cannot leave the bank’s website or mobile application until the video KYC process gets over. There is no requirement for any third-party video calling application such as Zoom, WhatsApp, Google Duo and Skype.
“Don’t give your personal details, PAN card and Aadhaar number if a link on SMS or email takes you off the bank’s website to complete the video KYC, as this could be a fraudster,” says Sachin Bhatia, Co-founder and Marketing Head of Ameyo.
How do I check whether the person on the video call to take me through the process is the bank's employee?
As per RBI guidelines, a verifying agent for video KYC cannot be a third-party agent, but has to be an employee of the bank. “To secure yourself from any fraudulent activity, you must ask the verifying person on video-call taking you through the process to show his bank identity card, get his full name and employee ID number for reference before beginning the video KYC process,” says Nair.
I have completed my video KYC process. When will I get my bank account details?
You will get your account details on your registered email ID and mobile number within eight hours of the bank completing the video KYC process.
Suppose the video KYC process gets interrupted due to poor internet connectivity and the process is suspended, you must restart the video KYC process. In such a situation, you will not get the account details. But, you will receive a communication from the bank that your video KYC process failed or is incomplete.