V-CIP is an alternative way of identifying a bank customer by identifying the customer face.
The Reserve Bank of India (RBI) amended the Master Instructions issued in the context of Identify Your Customer (KYC). This amendment was done to make the most of the video based identification process (V-CIP) of the customers and simplify the process of updating KYC periodically. V-CIP is an alternative way of identifying a bank customer by identifying the customer face.
Under this, the authorized officer of the entity falling under the Reserve Bank regulations checks the customer. Under this, information about identity is collected on the basis of audio-visual interaction with the customer, without any hindrance, secure, live and after consent.
They can use V-CIP
The Reserve Bank has stated that the company coming under its regulation can adopt the V-CIP process to examine the individual customer, its owner in case of proprietorship firm, its authorized signatory and beneficiary owner in case of legal entity. .
The units regulated by the Reserve Bank include banks, NBFCs and payment system operators. It says that these units can also use the V-CIP process to convert accounts opened without face to face. For this, he can perform Aadhaar OTP based e-KYC verification and perform periodic updation of KYC for eligible customers.
Now account will not be closed till 31 December if KYC is not updated
RBI has instructed all banks not to close customers’ bank accounts till 31 December 2021 if KYC is not updated. Apart from this, RBI has also allowed the use of Limited KYC till 1 December 2021. Now banks can open account through video KYC of customers.
