Investor Presentaiton
Lenders wary as RBI tags centralised KYC as high risk
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"Such customers (onboarded
through c-KYC and DigiLocker)
shall be categorized as high-risk
customers and accounts opened
in non-face-to-face mode shall
be subjected to enhanced
monitoring until the identity of
the customer is verified in face-
to-face manner or through V-
CIP (video-based customer
identification process)"
- RBI in its April 28 update to the
master direction on KYC
"
Central Registry of Securitisation Asset Reconstruction and Security
Interest of India (CERSAI), which manages the registry, is used by
~5,000 institutions and contains ~700 million KYC records
C-KYC database was conceived as a solution to all the KYC
challenges given its utility and customer convenience
Given the RBI circular, even if a bank uses c-KYC to onboard a
customer, it will eventually have to use video KYC or physical
check to authenticate the person
Video KYC costs between Rs 15 to Rs 30, depending on the
process complexity vs Rs 1.10 for downloading data on the
C-KYC registry
The regulator's move will push up the eventual cost of
doing KYC on these customers
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