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Now, open bank account over video chat

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RBI allows video based customer identification process

Now, you will not have to physically be present at a bank branch to open a bank account. Opening an account is now allowed over a video chat with a representative of a bank branch.

The Reserve Bank of India (RBI) has decided to permit video-based Customer Identification Process (V-CIP) as a consent-based alternate method of establishing the customer’s identity, for customer onboarding.

RBI said the decision has been taken with a view to leveraging the digital channels. This is a giant leap for digital banking as such a facility is available only in few countries which Germany as the market leader. The demand for such a facility mainly came from tech-savvy new-age banks and prepaid payment instrument issuers, following which the government amended the Prevention of Money Laundering Rules which the banking regulator has now operationalised by amending its master direction on ‘know-your-customer’ (KYC) norms. For video-based customer authentication, PAN number and Aadhaar number will be mandatory.

“Live location of the customer [Geotagging] shall be captured to ensure that customer is physically present in India,” RBI said. Banks have to provide the facility of such audiovisual interaction.

RBI said all the regulated entities (RE) like banks should ensure that the process is a seamless, real-time, secured, end-to-end encrypted audiovisual interaction with the customer and the quality of the communication is adequate to allow identification of the customer beyond doubt.

“RE shall carry out the liveliness check in order to guard against spoofing and such other fraudulent manipulations,” the RBI said.

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Printable version | Jan 28, 2020 4:32:29 PM | https://www.thehindu.com/business/now-open-bank-account-over-video-chat/article30527162.ece

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