Understanding Video KYC: A Step-by-Step Guide

Video Know Your Customer (Video KYC) is a digitally-secure method for verifying customer identity through online video calls, eliminating the need for physical visits to a financial institution. According to Reserve Bank of India (RBI) guidelines, this is formally known as the Video-based Customer Identification Process (V-CIP) . This innovation has revolutionized the Personal Loan application journey, allowing borrowers to apply and complete verification from the comfort of their homes.

What is Video KYC?

A Video KYC, or V-CIP, is an online identity verification method authorized by the Reserve Bank of India (RBI) to replace traditional physical in-person verification (IPV). The video kyc meaning extends beyond a simple call; it is a legally binding verification used for financial transactions like Personal Loans. It involves capturing a live picture of the customer and digital verification of their Aadhaar and PAN cards.

Why Video KYC Important for Personal Loans?

In the modern financial landscape, what is a video kyc becomes critical for instant credit. It bridges the gap between digital application and final disbursement by:

• Ensuring Legitimacy: It acts as a safeguard against identity theft and fraud.
• Regulatory Compliance: It adheres to the strictest anti-money laundering (AML) and counter-terrorism financing (CTF) regulations.
• Speed: It allows regulated lenders like Hero FinCorp to verify and approve loans in a fraction of the time taken by manual methods.

How Does Video KYC Work?

The video kyc process works by connecting you with a trained representative over a secure and encrypted video call. During the call, the representative verifies your identity by checking your original documents in real-time. Advanced video-based KYC solutions often incorporate biometric checks, such as facial recognition and AI-driven liveness detection, to ensure authenticity.

Read Also- What is KYC - Different Types of KYC

Benefits of Video-KYC

Understanding the advantages is key to appreciating this technology:

• Faster KYC Completion: The video kyc verification process is virtually instantaneous, allowing regulated lenders to complete identity checks within minutes.
• Remote Customer Onboarding: Users can complete the process from any location with internet access, removing geographical barriers.
• Superior Customer Experience: It is contactless and stress-free, enhancing overall satisfaction compared to traditional methods.
• Increased Accessibility: It promotes financial inclusion, making it easier for people in remote areas to access credit from top institutions like Hero FinCorp.
• Cost Savings & Fraud Reduction: It reduces the operational costs of physical verification and mitigates risks through real-time checks

Required Documents for Video KYC

To ensure a smooth video kyc verification process, keep the following ready:

• Identification Documents: Original PAN card (mandatory for V-CIP) and Aadhaar card.
• Supporting Documents: Digital copies of proof of income or employment as requested by the lender.
• Technology Requirements: A device with a functional webcam (smartphone or laptop), stable internet, and GPS enabled for mandatory geo-tagging.

Read Also- Documents Required for Online KYC and Document Preparation before Loan Application

Video KYC Security Measures & Compliance

Lenders utilize high-level security to protect your data:

• End-to-End Encryption: All video calls and data transmissions are encrypted to prevent unauthorized access.
• RBI Compliance: Every session follows the Master Direction - KYC Direction, 2016 (Updated 2024).
• Liveness Detection: AI tools ensure that the person on the call is alive and not a static image or deepfake.
• Geo-Tagging: Live location capture ensures the customer is physically present in India during the process.

Important Guidelines for Video-KYC

• Use Authentic Sources: Only click V-CIP links sent via official channels (SMS/Email) from known and trusted lenders.
• Do Not Share Sensitive Info: Officers will never ask for your passwords, OTPs, or UPI PINs.
• Avoid Third-Party Apps: RBI strictly prohibits using WhatsApp or Skype; the process must occur on the lender's secure, proprietary platform.

Steps in the Video-KYC Process

1. Preparation: Gather your original documents and ensure you are in a well-lit, quiet room with your GPS turned on.
2. Aadhaar eKYC: Verify your Aadhaar via OTP to initiate the digital profile.
3. Joining the Call: Click the secure link provided by the lender to connect with a KYC officer.
4. Document Verification: Hold your original PAN card up to the camera as instructed.
5. Live Photo & Interaction: The officer will capture your live photo and may ask random questions (e.g., "What is your date of birth?") to confirm a live interaction.
6. Review & Approval: The lender audits the session recording and approves your KYC, typically within minutes.

Difference Between Digital KYC and Video KYC

Common Challenges & How Video KYC Overcomes Them

• Poor Connectivity: Modern V-CIP platforms optimize video quality for low-bandwidth areas to ensure completion.
• Identity Fraud: Traditional KYC can be bypassed with forged copies; Video KYC's live interaction makes this nearly impossible.
• Branch Access: Residents in rural areas no longer need to travel miles for a 5-minute verification.

Conclusion

Video KYC has transformed the Personal Loan process into a truly "anytime, anywhere" experience. By eliminating physical paperwork and branch visits, it offers a secure, technology-driven path to instant credit.

At Hero FinCorp, we leverage these advanced digital tools to ensure your safety and convenience. Eligible applicants can apply for a Personal Loan of up to Rs 3 Lakh with competitive interest rates starting from 11% to 25% p.a. depending on credit profile

Frequently Asked Questions

1. Is Video KYC secure?

Yes, it uses end-to-end encryption and secure V-CIP protocols mandated by the RBI to ensure data privacy and prevent breaches.

2. Is Video KYC approved by the RBI?

Absolutely. It is a legally recognized method under the RBI's Video-based Customer Identification Process (V-CIP) guidelines.

3. Can Video KYC be used for all types of transactions?

It is primarily used for high-value financial services such as Personal Loans, bank account openings, and credit card applications.

4. Can we do Video KYC on Mobile?

Yes, as long as your mobile has a functional front-facing camera, GPS capabilities, and a stable internet connection.

5. How long does Video KYC take to complete?

A typical session takes only 3 to 5 minutes, depending on document clarity and internet speed.

6. Can Video KYC be done without a physical PAN card?

No. According to RBI V-CIP mandates, capturing a clear image of your original physical PAN card is a mandatory requirement.

7. What is Aadhaar e-KYC and how does it relate to Video KYC?

Aadhaar e-KYC is often the first step in the Video KYC process. It uses your Aadhaar number and an OTP to pull your basic demographic data, which is then verified during the live video call85.

8. What happens if Video KYC is not done?

Your loan application will remain incomplete as per mandatory RBI KYC norms, which may lead to delays or the rejection of your application.

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