/regulation & compliance

News and resources on regulation, compliance, legal and governance for banks.
RBI paves the way for remote customer onboarding

RBI paves the way for remote customer onboarding

Indian banks and fintech startups have been given the go-ahead to use video calls to complete KYC compliance checks, following a ruling by the country's central bank.

The new rules give regulated companies the ability to remotely vet a customer’s identity through PAN or Aadhaar cards and a series of questions, removing the need for customers to visit a bank branch to prove their bona fides. Geo-location will need to be switched to ensure that the applicant is physically present within the country.

In a further stipulation, the RBI states: “The audiovisual interaction shall be triggered from the domain of the regulated entity itself, and not from third-party service provider if any. The VCIP process shall be operated by officials specifically trained for this purpose.”

Nirmal Jain, chairman of Indian financial services conglomerate IIFL Finance welcomed the move.

“RBI's decision of allowing video KYC is really positive and pragmatic," he says. "In fact, regulators are moving faster on technology than the industry.”

Comments: (0)

Trending Stories