Video KYC will have to be verified through Aadhaar.
Economy
& Policy : The Reserve Bank of India (RBI) on Thursday
allowed video-based authentication as an alternative to the accepted
e-KYC (know-your-customer) practices, but such verification will be
Aadhaar-based, either online or offline.
The need for video-KYC was proposed in the report of the Expert Committee on Micro, Small and Medium Enterprises, headed by UK Sinha, former chairman of the Securities and Exchange Board of India (Sebi) in June last year.
The
panel observed that currently for conducting even e-KYC,
the customer has to be physically present and the whole process takes
lots of data handling.
On
the other hand, in video-KYC, the whole process can be done simply
through a video chat where the customer can display documents. Such
video-KYC can be done through Google Duo or Apple FaceTime, the
committee had recommended.
However,
experts pointed out that considering these applications were of
foreign origin, the RBI would unlikely allow them. Under the data
protection Bill, the central bank is unwilling to let companies store
customer data in foreign locations.
The
RBI
master direction did not mention what application can be used for
video chat. But experts say it is likely that the government will
have to develop such an app specifically for video-KYC whose servers
will be located onshore. The RBI accepted the recommendations and
amended its master direction on KYC.
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