RBI has announced that companies can also verify customer information through video.
When the Reserve Bank of India (RBI) announced to make KYC mandatory for all the wallet companies for their customers, many companies opposed it. The reason for this was the expenses incurred on it and the staff engaged to complete this process. But now RBI has made some changes in its rules in view of digital age. The central bank has announced that companies can also verify customer information through video. While this will save companies’ expenses, it will also make the process easier for customers.
To make the process easier
The procedure that RBI has described is simple – in this the company has to keep a record of the time of the video, while the customer only has to show his documents on the video and enable the location so that the process can be geo-tagged. However, it is not clear how to record the video. If the initial reports are to be believed, then companies can use Google Video Chat (Duo) for this, but nothing has been decided yet.
Sunil Khosla, Digital Business Head of India Transact Services Limited (ITSL), has a different view on this. He believes that the government can develop its own app in some time, in which all these features are present. He said that the process will cut costs significantly.
Must have a Digilocker account
There are some fears also with this. Currently a representative can do this work, but once the video KYC starts, every customer must have a DigiLocker account for that. This must be done to save videos and other verification. This is not difficult for the younger generation and people living in cities. But the process of opening DigiLocker is a bit difficult, which will not be easy for the rural areas. Therefore, the government must first confirm that the process of opening DigiLocker can be done easily.
This service will help companies to open accounts and verify the customer. With this, you will be able to share documents through DigiLocker. So, KYC process is easy for the customer. Open a DigiLocker account, link it to the government’s video service or Google Duo, whatever the RBI has told you.
Keep the service of your location on and keep in mind that your pictures and documents are clearly visible during the video. Linking DigiLocker and video is the first step like KYC e-verification. If it is successful, the government can extend it to other services as well.