Private lender Kotak Mahindra Bank unveiled India’s first Video KYC facility for customer onboarding, five months after the banking regulator Reserve Bank of India (RBI) first okayed such a method to be chosen for customer identification. The lender stated that this would be used to opening a saving account in its 811 portfolio of products on a pilot basis and would later be extended to other products in a gradual manner. The RBI in January 2020 had allowed Video-based Customer Identification Process (V-CIP) to “leverage digital channels for Customer Identification Process (CIP) by Regulated Entities (REs)” through a notification.
With the help of this system, the lender could eliminate the requirement for an individual to visit a branch or having an in-person interaction, biometric verification or sharing of physical documents. Through a video call, both KYC documents could be verified and the customer’s signature can be recorded. The entire Video KYC process would be recorded and saved by the bank, but would only be available to Indian customers.
“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,” said Shanti Ekambaram, Group President – Consumer Banking, Kotak Mahindra Bank whilst also adding that the “process saves time and gives customers full-fledged savings account with no restrictions or limits on the usage of the account.”