Video KYC Service

• Kotak Mahindra Bank has launched a service for their savings account product called Kotak 811.
• After the lockdown, as the business took a beating, banks took it on priority to launch this service.

• With the lockdown almost stalling the lending process and opening up of new accounts, banks have started doing KYC (know your customer) via videos. Kotak Mahindra Bank Ltd was the first one to launch a savings account for which the entire KYC process can be done online, followed by IndusInd Bank Ltd and RBL Bank Ltd.
• Most of these banks have launched the video KYC process for accounts that they have been sourcing digitally. Kotak Mahindra Bank, for example, has launched a service for their savings account product called Kotak 811, which is a digital bank account. RBL has launched a product called RBI Digital Savings Account.
• Before the Reserve Bank of India (RBI) allowed video KYC, banks would source these accounts digitally, but had to complete KYC within 12 months of opening them. The RBL Bank Head of Retail Liabilities adds that the KYC was physical, and until it was completed, a customer could not hold more than ₹1 lakh balance.
• The banking regulator introduced video KYC in January. But after the lockdown, as the business took a beating, banks took it on priority to launch the service. In the normal course of business, the process could have taken two to three quarters, as it requires banks to set up infrastructure based on the RBI guidelines. But banks and non-banking financial companies (NBFCs) are working on it to go live as soon as they can said the CEO of BANKBAZAAR.com.
• Kotak Mahindra Bank and RBL Bank have launched the initiative on a pilot basis for their savings account. But they plan to extend to other products in a phased manner. The banks are also offering credit cards, besides opening up a savings account, through video KYC to eligible customers. Also, they believe that for the industry, about 65-70% of the account sourcing would happen through this even after the lockdown and for high networth customers, it would be assisted digital account opening, where a representative would help a wealthy depositor. Opening a current account is not yet entirely digital.

How video KYC works:

1. The customer can visit the website of a bank or download its app.
2. After entering the name, mobile number and email address, the customer has to give consent to use Aadhaar to open the account.
3. After filling up PAN and address details, the app starts the video KYC process.
4. At this stage, the customer is connected to a bank executive, who asks the customer to show original documents and conducts the KYC process.
5. According to the RBI regulation, the customer must allow the bank app to provide location access.
6. The facility is available during office hours—banks are conducting live video KYC between 9:00 AM and 6:00 PM.