Video KYC Process: V-CIP Guide, Steps & Compliance

Summarize Blog With:

ChatGPTClaudePerplexityGrok

KYC (Know Your Customer) is a mandatory step for customer onboarding in banks, mutual funds, NBFCs, insurers, and other financial institutions regulated by RBI, SEBI, or IRDA. Video KYC refers to conducting the KYC verification process via a live, recorded video interaction between the customer and an authorized verifier. In India, regulators commonly term this capability as V-CIP (Video-based Customer Identification Process), and it is designed to achieve the same compliance rigor as in-person KYC while improving speed, convenience, and security.

Video KYC helps organizations reduce drop-offs, shorten time-to-activate, and strengthen fraud prevention by combining human verification with technology-led checks such as liveness detection, face matching, and secure document validation. When implemented correctly, it ensures that regulatory standards are met without compromising on customer experience or data protection.

Regulatory Requirements for Video KYC

Across RBI, SEBI, and IRDA regulations, institutions must adhere to strict operational and technical controls for Video KYC/V-CIP. While details may vary by regulator and customer type, the following controls are commonly required to ensure compliance, auditability, and security:

• Video recording and live photo capture of the customer — The entire interaction is recorded end-to-end, and still images may be captured during the session for verification and audit trails.
• Offline Aadhaar verification with XML file not older than 3 days — The UIDAI-provided offline XML file or secure QR is used to validate identity information without performing online eKYC.
• Capture clear image of the customer’s PAN card — A legible, glare-free PAN image is taken to verify identity and comply with PAN-based checks for financial onboarding.
• PAN card verification from the database — PAN details are validated against authorized databases to confirm authenticity and status.
• Geo-tagging to ensure the customer is located in India — Location coordinates are captured during the session to confirm presence, as required for specific customer types and use cases.
• Customer’s photograph matched with those on ID documents — Face-matching is performed to confirm that the person on the video is the same as the one on submitted IDs.
• Matching details on ID cards with the submitted form — Data extracted from documents is compared with the application form to identify inconsistencies.
• Randomization of sequence/type of questions during verification — Verifiers ask dynamic questions and perform unscripted prompts to prevent spoofing or pre-recorded responses.
• Concurrent audit process — A risk-based, concurrent or near-real-time review mechanism validates adherence to policies and flags anomalies promptly.
• Identification and liveliness verification beyond doubt — Multi-layer liveness checks (e.g., prompted gestures, head movements, and speech) establish that the interaction is live and unscripted.
• Video triggering from registered entity domain — Sessions are initiated from the regulated entity’s controlled environment, ensuring secure links and authorized access.
• Secure storage of video with date/time stamps — Recordings and images are stored securely with immutable timestamps and session identifiers for compliance and audit.
• Use of latest AI and face recognition technology — Technology aids verification, but the final responsibility and oversight remain with the regulated entity and its authorized officials.
• Redacting Aadhaar number as per legal requirements (Sec 16) — Aadhaar numbers must be masked/redacted and handled strictly as per applicable data protection and Aadhaar regulations.

These controls collectively help regulated entities meet the standards for secure onboarding, strong customer authentication, and effective anti-fraud measures. As of 2025, institutions continue to pair AI/ML-driven checks with human-in-the-loop verification and robust audit trails to maintain both compliance and customer trust.

How to Do Video KYC?

1. Visit the bank’s website and schedule a video call
   Customers typically initiate Video KYC from the institution’s official website, app, or link shared after sign-up. They select a convenient slot or join an on-demand queue, depending on availability.
2. Receive automated confirmation via SMS or email with a joining link
   A secure link (and sometimes an OTP) is shared to authenticate the customer before the session begins. The link should originate from the regulated entity’s verified domain. Institutions often send confirmations over SMS to ensure timely delivery.
3. Join a video call with the bank official
   The authorized verifier confirms consent for recording, checks audio-video quality, and explains the steps. Customers are advised to be in a well-lit area with a stable internet connection.
4. Officially Valid Documents (OSV) checks are conducted
   Customers present their IDs (e.g., PAN and Aadhaar offline XML/secure QR). The verifier ensures that documents are original, legible, and belong to the person on the call.
5. Liveliness check is performed with random body movements and real-time image capture
   The verifier may ask the customer to perform prompted actions (blink, turn head, read a random phrase) while the system captures stills to confirm liveness and deter deepfakes.
6. Address verification by customer using geo-tagging and Google Maps
   The system captures geolocation coordinates, and the customer may be asked to confirm their address. This helps validate the declared address against permissible onboarding rules.
7. Face match of the customer with submitted documents for validation
   Face recognition is used to match the live video frame with the photo on ID documents. In case of a mismatch or low confidence score, the verifier may request additional clarifications.
8. Verifier either passes or rejects the KYC application based on the assessment
   All observations—document checks, liveness outcomes, and data matches—are reviewed. If issues are found, the session may be rescheduled or alternative KYC options suggested.
9. Auditor reviews the verification details and processes the application
   A concurrent or second-level review confirms policy adherence. Any discrepancies are flagged for re-verification to maintain strict governance.
10. Customer receives notification of KYC success or failure
    On approval, the account or product is activated per the institution’s processes. On failure, customers receive guidance on next steps, such as reattempting Video KYC or completing another permitted KYC route.

This step-by-step process ensures a thorough and compliant verification. To improve the success rate, customers should keep required documents handy, ensure adequate lighting, and join from a quiet environment. Organizations, on their part, should ensure that links are secure, sessions are properly recorded, and all actions are logged with timestamps and identifiers. Clear on-screen guidance, multilingual support, and accessibility features can further reduce friction and improve completion rates without compromising on regulatory rigor.

Video KYC solutions today also emphasize strong data privacy practices. Sensitive identifiers are masked wherever mandated, only necessary information is collected, and storage is secured with role-based access controls. Audit logs, maker-checker workflows, and periodic internal audits help maintain continuous compliance. When any check fails—such as poor image quality or unsuccessful liveness—the process allows for quick reattempts with improved guidance. This balance of automation and expert oversight keeps onboarding fast, secure, and compliant.

Video KYC (V-CIP) combines real-time human verification with robust technology checks to deliver secure digital onboarding.

In summary, Video KYC (V-CIP) combines real-time human verification with robust technology checks to deliver secure digital onboarding. By following the regulatory requirements above and adhering to the operational steps outlined, financial institutions can confidently verify customers remotely while offering a seamless experience. This explanation comprehensively outlines the Video KYC process, regulatory requirements, and procedural steps, as described on Ameyo by Exotel’s official blog.