VCIP(Video Based Customer Identification Process) in 2025

The digital-first global business environment drives organizations to use advanced solutions that expedite customer admission while meeting regulatory demands. Video-Based Customer Identification Process (VCIP) is a secure and time-efficient method that enables remote identification of customers. This guide provides an overview of everything essential regarding VCIP, including its operational process, regulatory structure, and performance perks.

Table of Contents

What is the Video-Based Customer Identification Process (VCIP)?

Businesses use Video-Based Know Your Customer through Video KYC as a digital verification method, which requires live video interactions for customer identity verification. Customer onboarding operations become easier through VCIP because the solution does not require physical documents or on-site verification methods.

Steps Involved In The VCIP Process

The V-CIP (Video-Based Customer Identification Process) offers clients a speedy and secure solution for distant identity authentication. Companies use specific, structured steps to guarantee precise and compliant results that reduce fraudulent activities. Workers who participate in the V-CIP process need to follow the following sequence:

1: Initiation

When customers begin the V-CIP, they use company-operated applications and websites. They begin their verification by providing essential information and submitting required documents, which starts the verification sequence.

2: Video Call

The company schedules a real-time video session for their trained representative to meet the client. The live communication establishes absolute accuracy while providing on-the-spot clarification when requested.

3: Document Verification

The representative in the video call requires customers to show their identity documents, including Aadhaar and PAN cards, during the live video session. OCR technology is an automated system that reads and authenticates information in documents.

4: Facial Recognition

The system uses modern facial recognition algorithms to compare photographs between the customer’s current appearance via webcam and their information in their Aadhaar and PAN cards. The contact center verifies that the person operating the phone matches the individual shown in documentation.

5: Liveness Detection

The system employs face liveness detection technology to stop cases of fraud. The technology makes sure customers appear physically present rather than employing recorded videos or images during their video session.

6: Completion and Record Keeping

After verification is completed through a video session, the recording will be stored safely for compliance needs and future reference.

What is Video KYC as per RBI?

RBI considers Video KYC a digital procedure that enables financial institutions and banks to conduct remote identity verification through video interactions with their customers. The RBI introduced Video KYC to serve the dual purposes of convenience and security by removing the requirement of document submission or in-person visits.

Customers work with a bank representative through video communication while showing their identity documents, which consist of Aadhaar or PAN cards, for verification. Customers must show their documents to the representative, who verifies them while employing face recognition technology and live detection procedures to authenticate customer identity. The process adheres to RBI’s KYC guidelines through its seamless customer onboarding process.

Video KYC meets legal standards under the RBI’s Master Direction on KYC procedures and functions as a protected, efficient method for customer authentication, thus replacing traditional verification systems. The technology is the standard approach for banks and NBFC institutions to simplify customer onboarding while upholding regulatory requirements.

RBI Video KYC Guidelines

Video KYC is the Reserve Bank of India‘s (RBI) established method for securing remote customer identity verification for banks and financial institutions. The RBI guidelines include three fundamental aspects: They enable efficient KYC process execution under compliance guidelines and prevent fraud.

Through remote verification, customers may complete KYC using smartphones or computers connected to the internet, in their homes or offices, without needing to visit bank branches.

Real-Time Video Interaction: The system enables customers to communicate with bank representatives instantly.
Document Verification: During the Durieo call session, the customer must show authentic, original identity documents, including Aadhaar and PAN cards, for verification.
Facial Recognition and Liveness Detection: Advanced systems match the customer’s live facial image against their document photos to confirm their physical presence.
Secure Data Handling: To protect privacy and comply with data protection standards, all video recordings and customer data must be encrypted and stored securely.
CERT-in Compliance: This system’s procedures must follow the security regulations established by CERT-in (Indian Computer Emergency Response Team).

Where can VCIP be used?

VCIP is a flexible and safe tool for customer verification that multiple business fields can employ. These are the main sectors that make extensive use of the Video-Based Customer Identification Process:

1: Banking and Financial Services:

This is for opening savings, current, or demat accounts.
Loan applications and credit card issuance.
Investment and wealth management services

2. Telecom

SIM card activation and mobile number portability.
Postpaid connection approvals.

3. Insurance:

Policy issuance and claim verification.
Onboarding new customers for life, health, or general insurance.

4: E-commerce:

High-value transaction verification.
Fraud prevention during customer onboarding.

5. Fintech and Digital Lending:

Instant customer verification for digital loans.
Compliance with KYC norms for fintech platforms.

6. Real Estate:

Buyer verification for property transactions.
Tenant onboarding for rental agreements.

7. Healthcare:

Patient verification for telemedicine services.
Health insurance enrollment and claims processing.

Advantages of VCIP in KYC

The Video-Based Customer Identification Process (VCIP) is a secure and adaptable identification authentication technology that works across various business sectors. Multiple industries make use of the Video-Based Customer Identification Process (VCIP) through these essential applications:

Enhanced Customer Experience

VCIP enhances the customer onboarding process by removing the physical requirement to visit verification centers. Users can use this method to finalize the verification procedure from their devices, including smartphones, tablets, and computers, thereby decreasing the time investment. By streamlining processes, VCIP’s efficiency enables quick verification that lets customers retain their satisfaction and stay with the company. Verification officers are accessible through real-time video interactions, providing customers with convenience and increased confidence during the verification process.

Cost-Effective Solution

Use of VCIP creates substantial financial benefits for business operations. Businesses that digitise their verification procedures minimise their expenses of paper documentation work, physical document repositories, and personnel costs for verification services. Because of lower infrastructure costs and logistical requirements, VCIP represents a price-efficient solution for organisations focused on cost minimisation in operations.

Fraud Prevention

Using advanced technologies makes VCIP particularly effective in reducing the risk of fraud because of its capabilities. The combination of facial recognition technology, AI-driven identity verification, and liveness detection systems verifies the actual presence of users who attempt access through physical checks. Security measures implemented through VCIP minimize identity theft and other fraudulent behaviors, thereby building a robust verification system with integrity.

Regulatory Compliance

VCIP fulfils all financial authorities’ industry standards, including those of the Reserve Bank of India (RBI) and various international standards agencies. It enables businesses to uphold KYC and Anti-Money Laundering (AML) regulations, which helps them avoid legal penalties and reputational harm. VCIP implements a structured framework that matches modern regulatory conditions to support efficient audit operations and reporting activities.

Scalability and Efficiency

Businesses that use VCIP achieve scalable customer base expansion through virtual customer identity verification systems that transcend geographical barriers. The ability to verify customers remotely allows organizations to sign up potential new clients anywhere in the world and to process new clients more inclusively. Implementing automatic verification processes and AI decision-making capabilities is a part of a system that accelerates operational times while maximizing operational efficiency.

Secure Data Handling

The digital verification process requires absolute protection of data as its primary priority. Customer information remains secure within VCIP through end-to-end encryption, secure cloud storage, and strict access control measures. The safe storage systems for video recordings and personal data minimize the threats of data breaches, unauthorized access, and cyber threats. The adherence to international data protection standards enables VCIP to build strong customer trust and regulatory compliance.

Contactless and Eco-Friendly Approach

Due to VCIP’s paperless nature throughout the digital verification process, customers receive environmentally friendly services. A paperless system reduces paper usage, carbon emissions, and environmental waste. VCIP’s contactless nature promotes superior safety combined with protective health measures in an era that strongly prefers remote solutions.

How Can KYC Hub Help?

The KYC Hub solution delivers an advanced V-CIP system, which makes the customer identification process straightforward. KYC Hub achieves convenient experiences for businesses and customers by having secure data storage alongside AI-powered tools that follow RBI guidelines.

KYC Hub’s advanced Video KYC solution, powered by AI and automation, delivers the following benefits:

Seamless Video Verification: Real-time face matching and document authentication.
Regulatory Compliance: Adheres to RBI and international KYC/AML guidelines.
Fraud Prevention: Liveness detection and geolocation tracking.
Scalability: Supports businesses of all sizes for efficient customer onboarding.

Conclusion

VCIP solutions revolutionize KYC processes, delivering accelerated identity verification while increasing security and regulatory compliance. Financial institutions and businesses continue to use video-based KYC, so implementing KYC Hub’s AI-based solution ensures efficient verification while improving customer experience.

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