• HDFC securities
• 28 Dec 2018
• ESOP Funding,Home Insurance,Knowledge Centre,MF Product

The central bank is of the view that video-based KYC is a viable alternative to biometric-based customer verification. RBI is pushing for the use of live videos, rather than recorded videos authenticated using artificial intelligence.

 

The Supreme Court clamped down Section 57 of the Aadhaar Act in Oct-18. This move has resulted in the invalidatingof the biometric e-KYC model for customer verification and onboarding. Now, the search is on for a reliable alternative. A leading financial daily carried the news that the industry has suggested video-based KYC in place of the barred biometrics-based electronic customer verification, but the RBI is more open to live rather than recorded videos.

 

"Video-based KYC is a viable process and had been suggested by some technology start-ups. RBI wants live videos to be used and was not keen on allowing recorded videos authenticated using artificial intelligence," a source told the daily.

 

It is believed that banking regulator is inclined on rolling out a digital authentication method.

 

"RBI is keener on starting off with XML-based Aadhaar authentication instead of offline QR code-based verification since the industry is not ready with that offering yet," another source informed the daily. Specifically, full-scale implementation of the quick response (QR) code option remains an issue.

 

According to industry insiders, the RBI is awaiting amendments to the Prevention of Money Laundering Act before modifying its know-your-customer (KYC) master circular since the guidelines derive their executive authority from the law.