What is Video KYC?

Video KYC is a convenient option for online banking and finance facilities where you can choose to verify your identity on a video call. Keep reading to learn about what a video KYC is, its verification process and its importance.
What is Video KYC?
5 min read
10 June 2025

Know Your Customer (KYC) is essential for verifying your identity when opening financial accounts. The vKYC full form is video KYC, a modern method authorised by the RBI to verify customers via video calls. This process uses a KYC application to collect documents like utility bills, driver’s licenses, or passports, ensuring real-time identity verification and added security. Digitisation has simplified KYC, reducing paperwork and speeding up onboarding. Video KYC makes the verification process convenient, safe, and compliant with regulatory standards in the BFSI sector.

What is video KYC?

Video KYC, or video-based KYC, is a digital method that lets financial institutions verify customer identities through video calls. This remote process simplifies traditional KYC, making eKYC verification faster, more convenient, and cost-effective. It enhances customer experience, ensures regulatory compliance, reduces fraud risk, and removes location barriers. What is video KYC? It’s a secure, efficient solution transforming identity verification in modern financial services.

Why do you need KYC?

It is mandatory to meet all eligibility requirements of KYC verification before you may apply for a personal loan or any financial product. KYC includes documents such as Aadhaar, PAN card, passport, and voter’s ID. But, one of the key benefits of the video KYC facility is that you do not need to submit physical documents. All the documents can be submitted electronically in a simplified manner.

Read more: What is e-KYC

What are the benefits of video KYC?

In the modern financial landscape, the benefits of video KYC have become increasingly apparent as institutions seek more efficient and secure methods for customer identification. KYC through video call is revolutionizing the traditional Know Your Customer (KYC) process by integrating advanced technology to streamline verification and enhance the overall experience. Here, we explore the key advantages of adopting video KYC solutions.

  • One of the key benefits of the video KYC facility is that you do not need to submit physical documents. All the documents can be submitted electronically in a simplified manner.
  • Video KYC enables a quicker loan approval process, eliminating the need for a physical visit to the branch.
  • This process enables faster loan approvals and disbursals.
  • Security measures enhance fraud prevention, safeguarding both the lender and the borrower.

What are the requirements for video KYC?

The requirements for video KYC typically include a valid government-issued photo ID, proof of address, a stable internet connection, a smartphone or computer with a camera, and the customer's active participation in a real-time video call with a KYC agent. This method ensures secure and compliant customer onboarding while eliminating the need for in-person visits.

What are the steps for video KYC process?

The video based customer identification process is a relatively recent innovation in the realm of KYC that has gained popularity due to its convenience and accessibility. Below is a breakdown of the video KYC process.

  • Pre-registration
    Pre-registration is the first step of video KYC procedure. Customers who intend to participate in the video KYC procedure are required to register with the financial institution beforehand. This requires providing personal information such as their full name, address, and identification provided by the government.
  • Arranging the video call
    Once the customer has registered, a time and date for the video call will be provided. Typically, the video conversation is done via a secure platform that protects the privacy of the customer's personal information.
  • Identity verification
    During the video conference, the customer will be required to give additional personal information and papers for identity verification. This may involve answering questions regarding their personal background or submitting extra evidence, such as a utility bill or bank statement.
  • Record-keeping
    The video call is recorded and stored as part of the KYC procedure. This is to ensure that a record of the verification process exists in the event of future disputes or governmental regulations.
  • Approval
    After the video call has ended and the customer's identity has been confirmed, the financial institution will analyse the customer's information and decide whether to approve the application. If accepted, the customer will have access to the financial institution's services.

How video KYC works?

Video KYC, or video-based KYC, is a streamlined digital process for verifying customer identities. Here’s how it works: First, the customer initiates a video call with a representative or automated system through a secure platform. During this KYC video identification process, the customer presents their identification documents, such as a passport or driver’s license, in real-time. The system or representative then verifies these documents against the customer’s live image. Advanced video-based KYC solutions often incorporate biometric checks, such as facial recognition, to ensure authenticity. The entire interaction is recorded for compliance and auditing purposes. This method enhances security, speeds up the verification process, and eliminates the need for physical documentation, making it a convenient and efficient alternative to traditional KYC methods.

Difference between video KYC and traditional KYC

Banks, financial institutions, and all other businesses that deal with money are required to comply with KYC rules. Historically, organisations would use a manual Customer Identification Program (CIP) to verify the identity of new customers during the onboarding process. This procedure could take up to several weeks, causing clients to abandon it midway.

The video KYC process, also known as video-based KYC, serves as a modern digital alternative to traditional Know Your Customer (KYC) procedures. This method offers enhanced security, efficiency, and cost-effectiveness compared to standard practices. By leveraging video-based KYC, financial institutions can eliminate the need for paper documentation, significantly simplifying and accelerating the verification process. The real-time nature of video KYC ensures that identity checks are completed quickly and securely, reducing the risk of errors and fraud. Additionally, this digital approach improves accessibility for customers, allowing them to complete their identity verification from anywhere, thus making the overall experience more convenient and user-friendly.

Read more: What is e-KYC

Conclusion

In conclusion, video KYC represents a significant advancement in the field of customer verification, offering a modern and efficient alternative to traditional methods. By leveraging real-time video calls, video-based KYC provides enhanced security through live interactions and biometric checks, reducing the risk of fraud and identity theft. This method streamlines the verification process, making it faster and more convenient for customers who can complete their KYC requirements from anywhere, at any time. Additionally, video KYC helps financial institutions cut costs associated with physical documentation and manual processing while improving overall operational efficiency. With its ability to meet regulatory standards and provide a superior user experience, video KYC is transforming how institutions approach customer onboarding and identity verification. As digital solutions continue to evolve, video KYC stands out as a pivotal tool in ensuring secure and seamless customer interactions.

Read more: What is e-KYC

Disclaimer

1. Bajaj Finance Limited (“BFL”) is a Non-Banking Finance Company (NBFC) and Prepaid Payment Instrument Issuer offering financial services viz., loans, deposits, Bajaj Pay Wallet, Bajaj Pay UPI, bill payments and third-party wealth management products. The details mentioned in the respective product/ service document shall prevail in case of any inconsistency with respect to the information referring to BFL products and services on this page.

2. All other information, such as, the images, facts, statistics etc. (“information”) that are in addition to the details mentioned in the BFL’s product/ service document and which are being displayed on this page only depicts the summary of the information sourced from the public domain. The said information is neither owned by BFL nor it is to the exclusive knowledge of BFL. There may be inadvertent inaccuracies or typographical errors or delays in updating the said information. Hence, users are advised to independently exercise diligence by verifying complete information, including by consulting experts, if any. Users shall be the sole owner of the decision taken, if any, about suitability of the same.

Frequently asked questions

What is video KYC?

Video KYC is a digital verification process where customers verify their identity via a video call, offering a faster and more convenient alternative to traditional KYC.

Is video KYC safe?

Yes, video KYC is generally safe. It uses advanced technology, including encryption and biometric verification, to ensure secure identity verification. Real-time video calls and document checks enhance accuracy and reduce the risk of fraud.

What is the purpose of video KYC?

The purpose of video KYC is to verify customer identities remotely, ensuring security, compliance, and a seamless onboarding experience for financial services.

Why is video KYC mandatory?

Video KYC is important to comply with regulatory requirements for customer identification. It helps financial institutions meet anti-money laundering (AML) and counter-terrorism financing (CTF) regulations by providing a secure and efficient method for verifying identities remotely.

What will they ask in the video KYC?

During video KYC, you will be asked to present and verify your identification documents, such as a passport or driver’s license. The representative may also ask you to perform specific actions or answer security questions to confirm your identity.

What if video KYC is not done?

If video KYC is not completed, you may face delays in accessing financial services or opening accounts. Compliance with regulatory requirements is crucial, and failure to complete video KYC could result in account suspension or denial.

Do I need a physical PAN card for video KYC?

You typically need to show your PAN card during video KYC, but it does not have to be physically present if the document can be verified electronically. Ensure that your PAN card details are clear and legible on camera.

Is video KYC approved by the RBI?

Yes, video KYC is approved by the Reserve Bank of India (RBI). It is recognized as a legitimate method for customer identification and verification, provided that it adheres to the regulatory guidelines and standards set by the RBI.

Is video KYC the same as offline KYC?

No, video KYC is not the same as offline KYC. Video KYC is a digital process conducted through video calls, while offline KYC involves in-person verification with physical documents at a branch or authorised center.

Is there any risk in KYC?

While KYC processes, including video KYC, are designed to minimise risks, no method is entirely risk-free. Potential risks include data breaches or fraud, but advanced security measures and regulatory compliance help mitigate these risks significantly.

Key Components of Video KYC Process

Video KYC involves document verification, live video interaction, biometric authentication, and real-time facial matching to ensure secure and compliant customer identification.

Which is better online bank verification or video KYC?

Video KYC offers more secure, real-time identity verification with biometric checks, while online bank verification may be quicker but less comprehensive.

How long does video KYC take to complete?

Video KYC typically takes between 5 to 15 minutes, depending on document availability and the verification process used by the institution.

Best Practices for Streamlined Video KYC

Ensure good internet connection, clear document images, proper lighting, and honest interaction to speed up the video KYC process effectively.

What is Aadhaar e-KYC?

Aadhaar e-KYC is an electronic verification method using Aadhaar data to authenticate an individual’s identity quickly and securely for various services.

Is e-KYC mandatory for online savings account opening?

Yes, e-KYC is mandatory for online savings account opening in India to comply with regulatory guidelines and prevent fraud.

How do I verify the digital signature in my Aadhaar PDF?

You can verify the digital signature in Aadhaar PDF using Adobe Reader’s signature panel, ensuring the document’s authenticity and integrity.

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