From UPSC perspective, the following things are important :
Prelims level : V-CIP
Mains level : Importance of KYC
The RBI has amended the KYC norms allowing banks and other lending institutions regulated by it to use Video-based Customer Identification Process (V-CIP), a move which will help them, onboard customers, remotely.
- The V-CIP will be consent-based, will make it easier for banks and other regulated entities to adhere to the RBI’s KYC norms by leveraging the digital technology.
- The regulated entities will have to ensure that the video recording is stored in a safe and secure manner and bears the date and time stamp.
- As per the circular, the reporting entity should capture a clear image of PAN card to be displayed by the customer during the process, except in cases where e-PAN is provided by the customer.
- The PAN details should be verified from the database of the issuing authority.
- Live location of the customer (Geotagging) shall be captured to ensure that customer is physically present in India.