The Reserve Bank of India (RBI) has eased the KYC process for customers of financial entities and allowed video-based KYC process and thereby the earlier documentation and physical verification is no more mandatory.
So as per the changes to the Prevention of Money Laundering rules, the RBI now allows live clicking of the photo and submission of a valid document supporting a person's identity. Nonetheless as per the guidelines, for the successful completion of the KYC process the person needs to be within India which shall be checked upon by geotagging.
For account opening, customers can now sign the documents digitally as well as documents maintained in digital locker shall be deemed valid as proofs from opening of account. For banks, aadhaar online verification has been allowed while in case of other entities, offline verification shall be continued with.
Further as part of video verification, to prevent any kind of spoofing, there will be random set of questions, live checks on the customer such that there is no dummy being used for the purpose. Also at the same time, to prevent any fake incidences, the process shall be encrypted.
So, with this private companies in the fintech space as well as startups will be relieved which earlier suffered on account of SC order which disallowed aadhaar access to them for any of the purpose.