E-KYC

• Aadhaar Authentication is a process by which Aadhaar number along with Aadhaar holder's personal information
/
• It promotes a paperless environment.
• The information provided through the e-KYC process is permitted to be treated as an Officially Valid Document under
PML Rules and is a valid process for KYC verification.
• Accounts opened using OTP based e-KYC, in non-face-to-face mode are subject to the following conditions:
➢ There must be a specific consent from the customer for authentication through OTP.
➢ The aggregate balance of all the deposit accounts of the customer shall not exceed rupees one lakh. In case
the balance exceeds the threshold, the account shall cease to be operational, until CDD is completed.
➢ The aggregate of all credits in a financial year, in all the deposit accounts taken together, shall not exceed
rupees two lakh.
➢ As regards borrowal accounts, only term loans shall be sanctioned. The aggregate amount of term loans
sanctioned shall not exceed rupees sixty thousand in a year.
➢ Accounts, both deposit and borrowal, opened using OTP based e-KYC shall not be allowed for more than
one year within which identification is to be carried out.
➢ If the CDD procedure, as mentioned above, is not completed within a year, in respect of deposit accounts,
the same shall be closed immediately. In respect of borrowal accounts, no further debits shall be allowed.
➢ A declaration shall be obtained from the customer to the effect that no other account has been opened nor
will be opened using OTP based KYC in non-face-to-face mode. Further, while uploading KYC information
to CKYCR, REs shall clearly indicate that such accounts are opened using OTP based e-KYC and other REs
shall not open accounts based on the KYC information of accounts opened with OTP based e-KYC
procedure in non-face-to-face mode.
• Referral Enterprises shall have strict monitoring procedures, including systems to generate alerts in case of any non-
compliance/violation, to ensure compliance with the above-mentioned conditions.
 CKYC
• Process of storing the KYC details of the customer centrally.
• Managed and administered by the Central Registry of Securitization & Asset Reconstruction and Securities Interest
in India (CERSAI) authorized by the Government of India to function as the Central KYC.
• Centralized repository of KYC records of investors in the financial sector with uniform KYC norms and inter-usability
of the KYC records across the sector of C Registry (CKYCR)
• An initiative of the Government of India where the aim is to have a structure in place which allows investors to do
their KYC only once.
• If you complete the CKYC process with an entity say a bank, it is sufficient for you to invest in all other financial
products like insurance, mutual funds, Demat account etc.,
• Customers to submit a duly filled & signed CKYC form along with self-attested supporting documents to verify proof
of identity and proof of address.
• Copies of Passport, Aadhar card, Voter ID, PAN details, Driving license, etc., are accepted as supporting documents.
• Requires additional information (for example investor's maiden name, mother's name, FATCA information, etc.)
to be collected and submitted to CERSAI for completion of the CKYC formalities of an investor.
• Repository Stores all information at one central server along with FATCA details that is accessible to all the financial
institutions.
• Once your CKYC form is processed successfully, you will receive a 14-digit identification number. This is known as
KIN (KYC Identification Number).
• KIN will be allotted by CERSAI within 4 5 working days.
• Getting CKYC compliant is free of cost for customers / investors.
• As per Prevention of Money-laundering (Maintenance of Records) Amendment Rules, 2015, Rule 9 (I) (1A), every
reporting entity shall be within ten days after the commencement of an account-based relationship with a client, file
the electronic copy of the client's KYC records with the Central KYC Registry.
 Re-KYC
• As per the RBI norms, Re-KYC needs to be done for all customers at specific intervals.
• Bank may request the customer to update their latest contact details and correspondence address with supporting
documents.
• Re-submitting KYC documents are often requested by the banks when an account is being held inactive for a longer
period or when there are too many or few changes in the deposits or when the account is very old.
• That is depending on the risk category of the customers, banks might ask to redo KYC formalities so that they can
have their database updated with the latest details of the customers.

Following documents can be submitted for Re-KYC (anyone document as Proof of Identify and one for Proof of Address):
✓ Passport
✓ Voter's Identity Card
✓ Driving Licence
✓ NAREGA card
✓ Letter issued by National population Register (NPR)
✓ Possession of Aadhar card as per notification dated. 29.05.2019

PAN card is mandatory as per the guidelines, whereas other documents are treated as Officially valid documents(OVD).

In case the PAN card is not available, Form 60 has to be obtained for opening the account and within a reasonable
period, PAN has to be obtained.

Aadhaar card is accepted as proof of both identity and address.

Any other document where identification or address can be established like Letter from the employer, utility bills of not
more than 2 months. Property or Municipal Tax receipt. Pension or family Pension Payment Orders (PPOs) issued to
retired employees by Government Departments or Public Sector Undertakings, if they contain the address;

Letter of allotment of accommodation from employer issued by State or Central Government departments, statutory or
regulatory bodies, public sector undertakings, scheduled commercial banks, financial institutions and listed companies.
Similarly, leave and license agreements with such employers allotting official accommodation.

➢ Photograph of the customer mandatory.

Changes due to the introduction of Video-based Customer Identification Process (V-CIP)

Definition of V-CIP

The process of V-CIP to be carried out by an official of the Bank, with an individual customer, after obtaining his informed
consent and shall adhere to the following stipulations:

• Officials performing V-CIP shall record video as well as capture photograph of the customer present for identification
information.
• Banks can use either OTP based Aadhaar e-KYC authentication or Offline Verification of Aadhaar for identification.
Further, services of Business Correspondents (BCs) may be used by banks for aiding the V-CIP.
• Banks to capture a clear image of PAN card to be displayed by the customer during the process, except in cases
where the customer provides e-PAN. PAN details shall be verified from the database of the issuing authority.
• Live location of the customer (Geotagging) shall be captured to ensure that customer is physically present in India.
• Bank official to ensure that photograph of the customer in the Aadhaar/PAN details matches with the customer
undertaking the V-CIP.
• Bank official to ensure that the sequence and/or type of questions during video interactions are varied in order to
establish real-time interactions and not pre-recorded.
• All accounts opened through V-CIP shall be made operational only after the concurrent audit, to ensure the integrity
of the process.
• Bank to ensure seamless, real-time, secured, end-to-end encrypted audiovisual interaction with the customer and
the quality of the communication is adequate to allow identification.
• Banks to carry out software and security audit and validation of the V-CIP application before rolling it out and to
ensure security, robustness and end to end encryption.
• Audiovisual interaction to be triggered from the domain of the Bank itself, and not from the third-party service
provider if any.
• V-CIP process to be operated by officials specifically trained for this purpose. The activity log along with the
credentials of the official performing the V-CIP shall be preserved.
• Banks to ensure that the video recording is stored in a safe and secure manner with the date and time stamp.
• Banks to take the assistance of the latest available technology, including Artificial Intelligence (AI) and face matching
technologies.
• Bank to redact or blackout the Aadhaar number.