In today's digital age, accessing banking services has become much easier. Thanks to new features provided by the Reserve Bank of India, the need to visit a bank is becoming less necessary. Anyone can now open a bank account for themselves or any member of their family from the comfort of their own home. This technological transformation of the banking sector has not only saved time but also made the entire process more secure and transparent than ever before.
What is Video KYC?
Video KYC is a modern technology that allows a bank official to speak directly to a customer via video call. This process verifies the customer's identity during the live call. It is considered a completely secure and reliable method. This facility can be availed at any time during the bank's designated working hours. This is very convenient for those who are unable to visit a bank branch due to busy schedules or other reasons.
Required documents and preparation
To complete this process, certain key documents are required. Customers must have their PAN card, Aadhaar card, and ID proof stored in DigiLocker. A smartphone or laptop with a good internet connection is also required to ensure the video call is seamless. During the live call, the bank official asks the customer to present their original documents to the camera, and their photo is also taken.
Important role of CKYC
Central KYC or CKYC is a digital database where banks and financial institutions store customer information. When an individual completes their KYC process for the first time, they receive a unique 14-digit number called a KIN (KYC Identification Number). This number serves as a digital identity, eliminating the hassle of submitting documents repeatedly in the future.
Benefits of CKYC
The biggest advantage of this system is that if a person has a KIN number, they don't have to go through lengthy paperwork again to open a new bank account or purchase an insurance policy. Simply sharing their KIN number is enough. This not only simplifies the banks' work but also frees customers from the hassle of repetitive photocopying and filling out forms.
In which institutions is it valid?
This system isn't limited to banks. All institutions under the RBI, SEBI, IRDAI, and PFRDA follow the CKYC process. This includes mutual fund companies, insurance companies, stock market-linked demat accounts, and pension services. A one-time process makes it easier to access financial services in all these sectors.
Simple registration process
When a customer first accesses services from a bank or financial institution, the institution registers that individual's information with CERSAI. This requires proof of address, such as an Aadhaar card, driver's license, or passport, and a photograph. Upon successful registration, the customer is notified of their KIN number via SMS or email. This makes the digital banking journey completely paperless and secure.
