Via this move, e-documents issued by issuing authority to customer’s Digital Locker account will now be accepted in the KYC process. This decision follows the inclusion of DigiLocker e-documents in the PMLA Act (The Prevention of Money-laundering (Maintenance of Records) Rules, 2005) four months ago.
The RBI also allowed banks and other lending institutions regulated by it to use Video-based Customer Identification Process (V-CIP) for the KYC process, as well as it has permitted live photos of the customer and their officially valid document as a proof of identification. However, EnTrackr reports that the changes done by the RBI – the official recognition to DigiLocker and the announcement of video-based KYC as an option to establish a customer’s identity – are seen as a boost for the financial services industry, since they will replace the extensive and cumbersome physical KYC process.
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now