Technology has changed how we interact with banks. This has led to an evolution in the way customer interactions are carried out in banking and finance. One such process that has got completely transformed is the Know Your Customer (KYC), which has now become a Video KYC (vKYC). This process enables the fulfilment of KYC procedures, including sharing legal and mandatory documents to verify the customer’s name, identity, address and other details.
What is Video KYC?
vKYC is a modern and convenient method used by financial institutions, particularly banks, to verify the identity of their customers remotely through video calls. This technology-driven process has gained importance due to its ability to simplify the customer onboarding while ensuring compliance with regulatory requirements.
Unlike the conventional approach that mandates a physical visit to a bank branch, vKYC facilitates fulfilling KYC requirements through a live video call with a designated bank officer. During this interaction, the KYC documents of the customer are meticulously scrutinised, and their signatures are digitally captured. Eliminating the need to attend in person simplifies a process that once meant long wait times and excessive paperwork, making the process extremely convenient.
It explains the benefits of online saving account opening associated with vKYC, the requirements to carry forward with the procedure, the eligibility criteria that should be met by the candidates, and the steps of the procedure that should be followed to open a savings account.
Prerequisites For vKYC: Embark On The Journey Of Online Savings Account Opening
For online saving account opening, a vKYC must be carried out, for which you must have the following in place:
- Pan Card: Ensure that your original physical PAN Card and related details are easily accessible before opening an online saving account.
- Blank-paper-pen: Keep blank white paper and a black or blue pen within reach to facilitate the real-time capture of your signature.
- Ample Light: Set up an environment with ample lighting and a clear background to ensure optimal video call quality.
- Stable Network: A stable and reliable network connection ensures a seamless and uninterrupted video call experience.
Benefits of vKYC
There are several benefits associated with implementing vKYC:
- Paperless Convenience: The process is characterised by its instantaneous and paperless nature, enabling the completion of KYC requirements within the digital environment.
- Elimination Of Branch Visits: One of the standout advantages is the complete elimination of the need to physically visit a bank branch or interact with a bank official.
- Global Reach: vKYC allows businesses to serve customers from different parts of the world without the need for them to travel to a specific location physically.
- Time Efficiency & Cost Savings: vKYC significantly reduces the time required for identity verification compared to traditional methods, where customers might have to wait for appointments and undergo lengthy processes. It can also lead to cost savings by reducing the need for physical infrastructure, staffing, and associated operational expenses in maintaining brick-and-mortar branches.
Eligibility Criteria
The following eligibility criteria should be met by a person to be eligible for the benefits of vKYC:
- Age: Applicants must be above 18 to avail of video KYC benefits.
- Residency: vKYC is exclusively designed for resident Indian individuals, making it especially suitable for domestic audiences.
Step-by-Step Process For Opening A Savings Account Via vKYC
Following is the guide explaining the Video KYC account opening process.
- Download The Official App: Commence by downloading the official mobile application of the bank that offers the Video KYC functionality. This simple and crucial step helps enter the v KYC account opening process.
- Access Video KYC: Launch the downloaded app and navigate to the dedicated vKYC, often labelled “Video KYC” or “KYC Verification.”
- Submit Required Documentation: Initiate the process by entering the necessary information, including details extracted from your PAN card, one of the critical components of the KYC process.
- Engage In The Live Video Call: Initiate a live video call with a designated bank officer, meticulously following the instructions related to the application. During this call, be prepared to showcase your PAN card for verification purposes and execute a live signature on a blank sheet of paper as directed.
- Document Verification: The bank officer will methodically guide you through the verification process of your submitted KYC documents during the live video call, ensuring a thorough review.
- Personal Interaction: Be prepared to respond to any queries the bank officer poses or provide additional information as requested during the video call, promoting a comprehensive verification process.
- Verification And Approval: Following the successful culmination of the video call, the recorded video and the submitted documents will undergo a meticulous verification process by the bank’s dedicated team.
- Account Activation: Your savings account will be officially activated upon receiving approval. You will get a complete package, including your account details and a detailed guide for digital account access.
Effortless Banking: Secure Your Future with a vKYC-Enabled Savings Account
vKYC serves as a perfect example of how new technologies can improve traditional methods and make them better. As the banking industry keeps up with the many new digital ideas, it shows how dedicated it is to giving customers convenience, efficiency, and availability. This transformation comes from combining modern ways with a strong focus on customers. This process makes things easy to understand and join in. In a time when convenience is really important, vKYC stands out as a way that gives customers more power.