Current Affairs

RBI amended the KYC Norms

Current context: The RBI has amended the KYC norms to use Video based Customer Identification Process (V-CIP) on 10th Jan 2020.
RBI amended the KYC Norms 
  • Under the new norm, banks and other lending institutions regulated by RBI are allowed to use a Video based Customer Identification Process (V-CIP).
  • The video KYC will be consent based, means the bank will have to take the consent of the customer for V-CIP.
  • The move will help the banks and lending institutions to onboard customers remotely.
  • The V-CIP 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.
  • RBI has allowed the V-CIP as:
    1. A consent based alternate method of establishing the customer's identity
    2. For customer on-boarding with a view to leveraging the digital channels for Customer Identification Process (CIP) by regulated entities (REs)
  • The video recording is stored in a safe and secure manner and bears the date and time stamp.
  • The central government had introduced V-CIP with making amendment in the guidelines under the Prevention of Money-laundering (Maintenance of Records) Rules, 2005.

Question: 

Q.1 RBI has recently amended the KYC norms to introduce a video based digital technology to help the banks and lending institutions to onboard customers remotely, the newly introduced technology is?
a. V-PCI
b. V-CIP
c. V-PIC
d. V-ICP
RBI amended the KYC Norms RBI amended the KYC Norms Reviewed by Neha Verma on January 10, 2020 Rating: 5

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