In a move with far-reaching consequences, RBI issued a notification dated January 9th, 2020, officially recognizing the Video-Based Customer Identification Process (VCIP) as a method of customer identification.
This means that banks and Regulated Entities (RE) can collect KYC information from their customers and perform authentication in a manner that is entirely remote and digitized.
If you’re curious as to what RBI has said about the steps involved in VCIP, this article is for you. Here we will examine the steps mentioned in this notification while taking some well-intentioned detours along the way.
Benefits of the notification
Firstly, it’s important to mention the effects that the notification will have on the financial landscape of India.
RBI’s notification regarding VCIP is hugely beneficial to both financial institutions and their customers in several ways, from significant reductions in operational costs to massive improvements in customer convenience. The notification will directly improve financial inclusion and the ability of companies to scale
What steps are involved?
The RBI notification stipulates a set of steps for banks and RE to follow when authenticating their customers through VCIP. The steps are outlined in the amendment to the Master DIrection (MD) on KYC.
These steps are as follows :
- The official initiates the process with the customer’s consent
- A video and a photo of the customer are captured
- The customer’s Aadhaar card is to be verified. Aadhaar authentication is used for banks and offline verification for other entities
- The customer’s real-time location is determined using Geo-tagging technology
- The official ensures that the face captured in the image is the same as the one in the customer’s PAN or Aadhaar. The official must also verify the rest of the details in the customer’s PAN or Aadhaar.
- There is to be a live Audio-Visual Interaction between the official and the customer to make sure that the customer’s video feed has not been pre-recorded
- The official completes the Video KYC process
- The official must now store the recorded video for future reference
As the steps indicate, RBI’s VCIP makes customer authentication completely digital. Additionally, it leaves several key areas open for innovation, integration, and improvement.
This is where we come in.
SignDesk is a product of Desk Nine Private Limited, addressing business workflow problems using cutting-edge technology.
SignDesk offers Scan.it, an AI-driven and ML-based customer onboarding product that supports VCIP while being fully compliant with the RBI’s guidelines. Scan.it allows users to submit their KYC information through video in a seamless, efficient, and secure manner.
How does our VCIP System work?
Scan.it incorporates the steps stipulated by the RBI into its Video KYC workflow. Scan.it, completely digitizes and streamlines VCIP, and provides an intuitive dashboard for the process.
The steps involved are as follows:
- The official, already in possession of the customer’s basic information, sends an invite to the customer through Scan.it’s Video KYC application. This invite is accessed via an internet browser on any device.
- Upon receiving the invite, the customer agrees to the terms and conditions of the process and chooses his/her preferred language.
- The official now makes a video call, which is recorded, to the customer and proceeds to initiate an interaction with the customer by posing three questions in a randomized order.
- The official asks the customer to show his/her PAN for validation using real-time document verification and face detection. Scan.it’s KYC authentication and automatic data capture capabilities extract information from the captured image of the PAN and validated.
- The official now ends the interaction and can watch the video of the customer again to verify that it was not pre-recorded.
- Geo-tagging software tracks the customer’s location in real-time, along with the latitude and longitude.
- The official can choose to accept or reject the customer’s KYC authentication after a concurrent audit of the information provided and a perusal of the recorded video on the role-based dashboard.
- If the official chooses to reject, the process begins again.
- If the official chooses to accept, a verification certificate with the requisite information and the details of the official responsible for the final authentication is generated and shared with the official.
- The recorded video interaction is stored along with the date and timestamp.
V-CIP For Smooth Onboarding
As can be observed, Scan.it’s Video KYC workflow is perfectly compliant with the RBI’s VCIP guidelines. The process is smooth and can be integrated in an end-to-end manner with any other verification or signing processes that the organization in question might want. This will potentially allow for bulk signing and authentication at low prices, which can turn out to be a massive game-changer for Indian financial institutions.
SignDesk’s main focus is to digitize the paper-based workflow of businesses and use cutting-edge technology to increase customer convenience and the efficiency of these businesses. Hence VCIP is a process that is in our wheel-house and is one which we, as pioneers in the game, are uniquely qualified to implement.
Provide your customers with smooth and seamless onboarding today. Book a demo and experience the future of customer authentication.