In a first, private sector lender Kotak Mahindra Bank on Monday launched a video-based KYC that will make it easier to open an account remotely, especially during the COVID-19 pandemic.
The Reserve Bank of India (RBI) earlier this year came out with detailed guidelines making video-based Know Your Customer (KYC) possible, after the banking system, which used to depend on Aadhaar data for remote account opening, got hit by the Aadhaar judgment of the Supreme Court.
Customers will need to share Aadhaar and PAN numbers as part of the account opening process under the video KYC system to open the 'Kotak 811 savings account', an official statement said adding that the facility will be used only for the savings accounts on a pilot basis.
Once a customer requests to open an account on the website, a bank executive will come on the video call with the customer and will involve the customer signing on a blank paper, it said adding that the entire video will be saved by the bank.
In the earlier system, a customer's Aadhaar made it much easier to 'establish' her identity and helped the KYC requirements.
Its Group President (Consumer Banking) Shanti Ekambaram said that in the new normal after COVID-19, video KYC can prove to be a game changer where customer verification is completed from the comfort of one's home or office without the need for a physical interaction.
Only Indian citizens residing in India during the account opening process are eligible for video KYC, it said adding that the facility is available only for new to Kotak customers.