Introduction
A Video KYC Solution allows financial institutions to verify customers remotely using a secure video-based process. In January 2020, RBI introduced the Video Customer Identification Process (V-CIP) as a valid alternative to physical KYC.
As a result, NBFCs, banks, and fintech platforms can now onboard customers without requiring branch visits. This shift enables faster onboarding and improves customer experience.
In addition, modern Video KYC APIs make the entire process scalable. Instead of building custom infrastructure, businesses can integrate a ready-to-use Video KYC Solution.
In this guide, you will learn how a Video KYC Solution works, how APIs support the process, and what RBI compliance requirements you must follow.
What Is RBI’s Video KYC (V-CIP) Framework?
RBI’s Video Customer Identification Process (V-CIP) allows regulated entities to complete KYC through a live video session.
In simple terms, a Video KYC Solution replaces in-person verification with a secure digital interaction.
Key Requirements Defined by RBI
- Live video interaction
The system must conduct a real-time session. Pre-recorded videos are not allowed. - Document verification
The customer must show an Aadhaar or Officially Valid Document (OVD) during the session. - Geolocation capture
The system must record the customer’s location during verification. - Session recording
The platform must store all recordings for at least five years. - AI or agent-led verification
RBI allows both automated and agent-assisted Video KYC Solutions.
How a Video KYC Solution Works
A Video KYC Solution follows a structured workflow. Each step ensures compliance and security.
1. Session Initiation
The system generates a secure session link. The customer receives it via SMS or app notification.
Then, the customer opens the link and starts the session. No app download is required.
2. Pre-Session Checks
Before the session begins, the system checks:
- Camera availability
- Internet speed
- Browser compatibility
If any issue appears, the system alerts the user. This step reduces failed sessions.
3. Live Video Verification
During the session, the system performs multiple checks:
- Captures identity documents
- Runs OCR for data extraction
- Performs face matching
- Conducts liveness detection
- Records geolocation
At the same time, an agent or AI system verifies the user.
4. Recording and Storage
The system records the entire session.
It stores:
- Video recording
- Timestamp
- Location data
- Verification results
This data forms the audit trail required by RBI.
Fraud Risks in Video KYC Solutions
As adoption grows, fraud attempts are also increasing.
Common Threats
- Deepfake attacks
Fraudsters use AI-generated videos to impersonate users. - Replay attacks
Attackers play pre-recorded videos during verification. - Presentation attacks
Fake images or screens attempt to bypass checks.
How to Prevent Fraud
A secure Video KYC Solution must include:
- Active liveness detection
- Random user prompts (blink, smile, turn head)
- Real-time verification checks
These measures ensure that the user is physically present.
RBI Compliance Checklist for Video KYC Solution
To stay compliant, your Video KYC Solution must meet these requirements:
- Conduct live video sessions only
- Capture and store geolocation
- Verify OVD documents in real time
- Perform face matching
- Store session data for five years
- Maintain a complete audit trail
- Capture customer consent
- Enable agent oversight when required
Where BeFiSc Fits
BeFiSc offers a complete Video KYC Solution designed for RBI compliance.
The platform provides:
- Secure session management
- Document verification
- Face match and liveness detection
- Geolocation tracking
- Full audit trail generation
In addition, it supports both AI-led and agent-assisted verification.
Key Takeaways
- A Video KYC Solution enables remote and compliant onboarding
- RBI allows Video KYC as a valid alternative to physical KYC
- Security features like liveness detection are critical
- Proper storage and audit trails are mandatory
- APIs make integration fast and scalable
Frequently Asked Questions
Yes, under RBI’s V-CIP circular (January 2020 and subsequent updates), Video KYC completed as per the specified requirements is legally equivalent to physical KYC for individual account opening and loan origination by regulated entities.
Yes, under RBI’s V-CIP circular (January 2020 and subsequent updates), Video KYC completed as per the specified requirements is legally equivalent to physical KYC for individual account opening and loan origination by regulated entities.
Failed sessions must be handled gracefully — session state preserved, customer notified, and a fresh session initiated. Partial session data must not be used for compliance decisions. Well-designed VKYC APIs include session recovery logic to restart from pre-failure checkpoints.
RBI permits AI-led VKYC for certain use cases but requires human agent oversight and the ability to escalate to a live agent. Full autonomous AI VKYC without any human oversight capacity is not currently permitted for regulated entities.
