The Reserve Bank of India is amending KYC (Know Your Customer) rules on Thursday. The same will now be used by the bank and other lending institutions for the video-based identification process (V-CIP). With this, the person sitting far away can also get KYC through video and the customer can be served as soon as possible. V-CIP will be consent-based. This digital technology can make it easier for banks and other regulated entities to follow the KYC rules of RBI.

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RBI issued a circular stating, "Reserve Bank of India may decide to recognize V-CIP as an agreed-upon alternative way of verifying the identity of the customer." This will allow digital channels to benefit in the customer identification process of regulated entities and make it easier to deliver services to the customer.

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According to the circular, the regulated institutions have to take a clear picture of the PAN card shown by the consumer during the KYC process. This will not happen in the case of the customer providing e-PAN. The RBI in its circular has encouraged regulated entities to take the help of modern available technology such as Artificial Intelligence (AI and facial matching technology), to ensure that the information provided by the consumer and the process is maintained properly. Last year the government notified the amendment in the Prevention of Money Laundering (Maintenance of Records) Rules, 2005. 

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