What is Video KYC? Why Is It Importance For Savings Bank Account Opening?

A bank savings account is usually the first step for any individual to enter banking, finance, and investment. Since a bank savings account involves monetary transactions, it is crucial to establish the customer’s identity and check his details. 

The KYC, or Know Your Customer process, is essential to almost all banking functions, including opening a savings account. The Reserve Bank of India (RBI) has made KYC mandatory for account opening. With most banking services and functions going online, a customer can now open a savings account online and opt for a video KYC account opening, which does not require visiting the bank branch personally. 

What is Video KYC

Traditionally, banks would carry out the KYC procedure in two ways: by asking the customer to visit the bank branch to complete the KYC process personally and by sending a bank representative to the customer’s home to collect the KYC documents. The RBI has allowed banks to open online savings accounts and video KYC account openings. A video KYC is a contactless audio-visual process where the bank representative conducts identification checks, verifies the customer’s PAN (Permanent Account Number) card, and completes the entire procedure on a video call. One can open a bank savings account online by completing a video KYC.

RBI Guidelines for Video KYC

The RBI guidelines for a video KYC are:

• The bank must obtain a customer’s consent before conducting his video KYC.
• The bank representative should geo-tag the live photograph of the customer to confirm that he is present in the country.
• Banks cannot use third-party video platforms to conduct video KYC. 
• Only the bank can initiate the video KYC platform from its domain, and the data should be kept securely.
• Video KYC is accessible only through a live authentication, OTP (One Time Password), or log-in ID and password. 
• The bank can capture the customer’s documents on video or have them uploaded for video KYC. 

Benefits of Video KYC

• Video KYC eliminates the need for the customer to be physically present during the verification process. 
• It makes the verification process reachable for people in rural areas and those who cannot visit the bank branch physically.
• It makes customer onboarding a smooth, safe, and quick process. 
• No middlemen are involved in collecting the verification documents of the customers, enhancing their safety. 

Steps Involved in the Video KYC Process to Open a Savings Account Online 

1. Fill out the savings account opening form on the bank’s website or mobile application. 
2. Give consent to the bank to extract Aadhar details, enter the PAN number, and upload the photograph. 
3. Fill out the other details as required by the bank. 
4. Proceed with the video KYC by clicking on the relevant link. 
5. The customer needs to allow the bank to access his mobile phone’s location, camera, and mic. 
6. Next, start a video call with the bank’s representative. 
7. The bank official verifies the customer’s photograph during the video call.
8. The KYC gets validated this way, the customer gets a notification when the KYC is complete, and the savings account becomes operational. 

Video KYC Account Opening Guidelines for Customers

An individual must ensure the following points to complete a smooth video KYC process:

• The customer’s background should be white in the photograph provided for KYC. 
• No other person would be in the frame when the video KYC is in process.
• The customer’s face should be visible throughout the video KYC process. 
• When the customer displays a particular document for verification during the video call, he should hold it vertically for live capture. 
• The customers are required to keep the device location on during the video KYC process. 
• For security reasons, the customer should ensure that the video link should lead directly to a website with the bank’s domain name only. 
• Requesting the bank representative to display their identity card with their name and employee ID before starting the video KYC process is advisable. 

Video KYC facilitates quick, smooth, convenient, and safe verification of documents of customers. Individuals do not need to spend time and energy visiting the bank branch for verification and can quickly complete it online.