On May 19, 2020, In view of the ongoing lockdown in the country due to Coronavirus (COVID-19), Kotak Mahindra Bank has become the 1st bank in India to allow video Know your customer (KYC) facility for its customers opening savings account (SA) on Kotak 811 platform.
i.How will KYC be completed?
Under the video conferencing KYC system, customers have to provide Aadhaar and PAN (Permanent Account Number) to open ‘Kotak 811 savings account’ in the Bank. After this, a bank official will complete the KYC process by verifying of documents, signature on a video call with the customer & this entire video will be saved.
ii.Who will get the benefit?
The benefit of this facility will be available only to Indian citizens living in India & only new customers will be able to take advantage of this. This facility will be available only on a pilot basis for savings account.
iii.Background: In January 2020, the RBI (Reserve Bank of India) has issued guidelines to complete the video-based KYC process. Earlier, banks had to rely on Aadhaar data to open accounts in remote areas.
What is KYC?
It is an important term used by businesses and refers to the process of verification of the identity of the customers and clients either before or during the start of doing business with them. This process helps to ensure that banks’ services are not misused.
About Kotak Mahindra Bank:
Headquarters– Mumbai, Maharashtra
MD & CEO- Uday Kotak
Group president consumer banking– Shanti Ekambaram
Tagline– Lets make money simple