The IDBI Bank has introduced the V-CIP (Video-based Customer identification process), a facility for periodic KYC verification, concerning the Reserve Bank of India's (RBI's) initiative to streamline compliance with KYC. On May 5, 2021, the IDBI Bank issued a statement in this regard. Customers can now update their KYC via the V-CHIP without having to visit the branches, according to Suresh Khatanhar, Deputy Managing Director at IDBI Bank. Customers can start the procedure whenever they want by heading to the V-CIP section on the Bank's website. This is a procedure that does not require any physical touch.
RBI Governor Shaktikanta Das declared on May 5, 2021 that certain aspects of the existing KYC norms will be rationalized. Banks do not take disciplinary measures against customer accounts where periodic KYC updating is due or pending, according to the Reserve Bank of India (RBI). Customers have until December 31, 2021 to update their KYC details, according to the RBI. "Keeping in view the COVID related restrictions in various parts of the country, Regulated Entities are being advised that for the customer accounts where periodic KYC updating is due/pending, no punitive restriction on operations of customer account(s) shall be imposed till December 31, 2021 unless warranted due to any other reason or under instructions of any regulator/enforcement agency/court of law, etc. Account holders are requested to update their KYC during this period," the RBI governor stated.
As a result, certain banks such as SBI have confirmed that customers can submit KYC related documents via email or post (click here to know the procedure and documents required). Limited KYC accounts opened in non-face-to-face mode on the basis of Aadhaar e-KYC authentication can be upgraded to complete KYC-compliant accounts, according to the RBI. Below is a glance at the steps that have been announced to simplify KYC compliance.
- Extending the scope of video KYC known as V-CIP (video-based customer identification process) for new categories of customers such as proprietorship firms, authorised signatories and beneficial owners of Legal Entities and for periodic updation of KYC;
- Conversion of limited KYC accounts opened on the basis of Aadhaar e-KYC authentication in non-face-to-face mode to fully KYC-compliant accounts;
- Enabling the use of KYC Identifier of Centralised KYC Registry (CKYCR) for V-CIP and submission of electronic documents (including identity documents issued through DigiLocker) as identity proof;
- Introduction of more customer-friendly options, including the use of digital channels for the purpose of periodic updation of KYC details of customers.