Video KYC in India: RBI Guidelines and Solutions

Video KYC has been around in India for a few years now. Most people have probably done it at least once - opening a bank account, getting a loan, maybe setting up a trading account.

From the customer side, it's pretty straightforward. Get on a video call, show your documents, and answer some questions. Takes maybe 10-15 minutes if everything goes smoothly.

But there's quite a bit happening behind the scenes. The RBI has specific rules about how these calls need to be conducted, what needs to be recorded, and how long records need to be kept.

That behind-the-scenes part is what we're going to focus on here. So, let’s dive in.

What is Video KYC?

Video KYC (Know Your Customer), also referred to as VKYC, is a digital customer verification process that allows financial institutions to remotely authenticate customer identities through live video interactions.

There are basically two ways VKYC happens in India - assisted VKYC and unassisted VKYC (also called automated VKYC). Both have to meet the same RBI compliance requirements, but the customer experience is pretty different.

• Assisted VKYC: Customer joins a live video call with a verification officer who guides them through document verification and asks required questions - everything gets recorded for audit purposes
• Unassisted VKYC: Customer follows AI-powered prompts to capture documents and answer questions without human interaction - facial recognition and document authenticity checks happen in real time

All VKYC sessions get recorded with detailed audit trails, liveness detection prevents fraud, and the data flows into core banking systems to actually create the account.

Most banks use both assisted VKYC and unassisted VKYC depending on the account type and complexity. The unassisted VKYC process is faster, but assisted VKYC helps when things don't go smoothly.

What are RBI’s guidelines for Video KYC?

The RBI has established comprehensive guidelines for VKYC through its Master Direction - Know Your Customer (KYC) Direction, 2016, with the latest updates as of June 2025. These guidelines cover the Video-based Customer Identification Process (V-CIP), which allows regulated entities to verify customer identities remotely. Both assisted VKYC and unassisted VKYC must comply with V-CIP requirements.

V-CIP is treated on par with face-to-face customer identification programs for regulatory purposes and must meet specific technical and procedural standards to ensure security and compliance.

Infrastructure and security requirements

Banks and financial institutions need to meet stringent technical standards to deploy Video KYC systems. The RBI has outlined specific infrastructure requirements that focus on data security, geographic controls, and system integrity.

These technical requirements ensure that Video KYC maintains the same security standards as traditional in-person verification while enabling remote customer onboarding.

Operational procedures

The actual conduct of VKYC sessions, whether assisted VKYC with human agents or unassisted VKYC with AI guidance, follows specific procedural guidelines designed to prevent fraud while maintaining customer convenience. The RBI has detailed requirements for how these sessions should be structured and managed.

1. Staff training and qualifications: Only specially trained bank officials can conduct V-CIP sessions, with specific requirements for detecting fraud attempts and conducting liveness checks
2. Document verification process: Customers can use Aadhaar OTP authentication, offline Aadhaar verification, CKYCR records, or DigiLocker documents for identity verification. Offline Aadhaar files and QR codes must be generated within three working days of the video session.
3. Session conduct standards: Officials must vary the sequence and types of questions to ensure real-time interaction rather than pre-recorded responses. Any prompting observed from the customer's end leads to automatic rejection of the application.
4. Technical session management: Disruptions creating multiple video files require fresh session initiation. Simple pauses without file creation don't necessitate restarting the entire process.
5. Quality control measures: Clear image capture of PAN cards is mandatory, with verification against issuing authority databases. Address verification must be conducted if the customer's current address differs from official documents.

These procedural safeguards ensure that each Video KYC session maintains the integrity and authenticity that traditional face-to-face meetings provide.

Data management and storage

All Video KYC data must be stored within India's borders, with banks maintaining comprehensive records that include video recordings, timestamps, and official credentials. Activity logs documenting each step of the verification process must be maintained alongside the actual video content.

The RBI also mandates concurrent auditing for all accounts opened through Video KYC, meaning verification must occur before accounts become operational. This ensures that every remote onboarding meets the same standards as traditional branch-based account opening procedures.

Permitted use cases

Video KYC can be deployed across various customer categories and scenarios, providing flexibility while maintaining security standards. The RBI has specifically outlined where this technology can be appropriately used:

• New individual customer onboarding
• Proprietorship firm verification (proprietor identification)
• Authorized signatory verification for legal entity customers
• Beneficial owner identification for legal entity customers
• Converting existing accounts opened using Aadhaar OTP-based e-KYC in non-face-to-face mode
• Periodic KYC updates for eligible customers

These diverse use cases show how Video KYC can serve as a comprehensive alternative to traditional in-person verification across different banking scenarios.

How to implement video kyc in india without breaking compliance rules? Best solutions

Implementing Video KYC while maintaining RBI compliance requires careful planning and the right technical approach.

Financial institutions have two primary paths to deploy this technology - each with distinct advantages depending on their resources, timeline, and technical capabilities.

Build in-house

Building an in-house Video KYC solution gives you complete control over the technology stack and compliance implementation. This approach requires significant investment in development resources, cybersecurity expertise, and ongoing maintenance.

You'll need to handle everything from CERT-In security audits to geo-tagging implementation, but you'll own the entire customer experience and data flow.

Using ready-to-use Video KYC infrastructure

Most banks and NBFCs find that partnering with established Video KYC providers offers faster deployment and proven compliance frameworks. These solutions come with pre-built RBI compliance features and have already undergone the necessary security testing.

While we may not know exactly how other Video KYC integrations work, we can share insights about Signzy's approach to implementation:

1. Book a demo with us: Schedule a consultation to understand how our Video KYC solution maps to your specific use cases and compliance requirements
2. Integration assessment: If you decide to move forward, our technical team works with yours to plan the integration approach that fits your existing systems
3. Pilot deployment: Start with a controlled pilot program to test the solution with a limited customer base and validate the compliance framework
4. Deploy and scale: Once pilot results are validated, gradually scale the solution across all customer touchpoints with full monitoring and support.

If you're looking to implement Video KYC without the complexity of building from scratch, book a demo to see how our proven solution can accelerate your digital onboarding timeline.