RBI amends Know Your Customer (KYC) guidelines


File photo: Reserve Bank of India

File photo: Reserve Bank of India

The Reserve Bank of India on Thursday amended the Know Your Customer or KYC guidelines to allow banks, lending companies and fintech startups to onboard customers remotely.

It has allowed for the video-based KYC of customers of financial institutions, thereby incorporating the changes made to Prevention of Money Laundering rules by the government.

The central bank has allowed for the use of a live photo of the customer, and his or her officially valid document as a proof of identification. It has also mandated for the geo-tagging of the customer’s video to ensure that they are located within the borders of the country.

RBI has not only allowed KYC documents to be submitted electronically, but also given the green light to accept digitally signed documents, and documents issued to the digital locker account of the customer, as proof for the opening of an account.

A Digi-Locker, as it is popularly called, allows citizens to store their personal documents online.

(With inputs from agency)