Video-based identification process
Mains Paper 3: Science and Tech
Prelims level : Video-based identification process
Mains level : Key findings about the identification process
The RBI amended the KYC norms allowing banks and other lending
institutions regulated by it to use Video based Customer Identification
Process (V-CIP), a move which will help them onboard customers remotely.
The V-CIP, which will be consent-based, will make it easier for banks
and other regulated entities to adhere to the RBI's Know Your Customer (KYC)
norms by leveraging the digital technology.
Last year, the government had notified amendment to the Prevention of
Money-laundering (Maintenance of Records) Rules, 2005.
With a view to leveraging the digital channels for Customer
Identification Process (CIP) by Regulated Entities (REs), the Reserve Bank
has decided to permit V-CIP as a consent based alternate method of
establishing the customer's identity, for customer onboarding.
The RBI further said that the regulated entities will have to ensure
that the video recording is stored in a safe and secure manner and bears the
date and time stamp.
Also, "REs are encouraged to take assistance of the latest available
technology", including artificial intelligence (AI) and face matching
technologies, to ensure the integrity of the process as well as the
information furnished by the customer.
"However, the responsibility of customer identification shall rest with
the RE," the circular on master directions said.
The Reserve Bank said it decided to permit video based Customer
Identification Process (V-CIP) as a consent based alternate method of
establishing the customer's identity, for customer onboarding with a view to
leveraging the digital channels for Customer Identification Process (CIP) by
As per the circular, the reporting entity should capture a clear image
of PAN card to be displayed by the customer during the process, except in
cases where e-PAN is provided by the customer.
The PAN details should be verified from the database of the issuing
Live location of the customer (Geotagging) shall be captured to ensure
that customer is physically present in India.
The official of the reporting entity should ensure that photograph of
the customer in the Aadhaar/PAN details matches with the customer
undertaking the V-CIP and the identification details in Aadhaar/PAN should
match with the details provided by the customer.
Q.1) With reference to the “unparliamentary” expressions, consider the
following statements: 1. Article 105(2) of the Constitution lays down that “no Member of
Parliament shall be liable to any proceedings in any court in respect of
anything said or any vote given by him in Parliament or any committee thereof”.
2. According to the Rule 380 (“Expunction”) of the Rules of Procedure and
Conduct of Business in Lok Sabha, Speaker while exercising discretion can order
that defamatory words be expunged from the proceedings of the House”.
Which of the statements given above is/are correct? (a) 1 only
(b) 2 only
Q.1) Describe the key components of the video based identification process.