NPS account can be open and money can be withdrawn with video-based customer KYC. PFRDA – Pension fund regulatory development authority has launched a video-based KYC facility in Oct 2020. PFRDA always works on the initiatives which are subscriber friendly. Before video-based customer KYC, PFRDA has already introduced various other facilities such as eSign/OTP, Offline Aadhaar based KYC, Paperless-on-boarding, eNPS, e Nomination, etc.
Now, all the intermediaries and NPS POP can use a video-based customer identification process (VCIP) to onboard, withdrawal, and exit of NPS Subscribers.
There are many banks and financial institutions & mutual fund house who are already using video-based KYC facilities. This facility eliminates the need for physical paper and personal visits. The entire process is online video-based.
Why Video-based customer KYC for NPS account is necessary?
Video-based KYC is a need of an hour in the current scenario. It will eliminate the need for a physical visit for all NPS subscribers.
As we know that it would be challenging to visit NPS POP in the current COVID situation. Social distancing, contactless services, and limited mobility is becoming the new norm of operation. VCIP (Video-based customer Identification Process) introduced for NPS will follow all these norms and provide contactless services to NPS subscribers.
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This service will also ease-out the process of on-onboarding & exit for the subscriber. The entire process will be online and verification will be carried out remotely over the video. VCIP will eliminate the need for paper-based KYC. It will also optimize the turn around time for the account opening and exit processing.
This facility will also help NPS in expanding customer base as account opening would be seamless, paperless and KYC would be online and easy.
Along with VCIP OTP/eSign will be used so that the entire process would be paperless. PFRDA will also allow virtual POP for NPS.
PFRDA has issued a guideline for VCIP for all POP. All the POPs including Central Record Keeping Agency will be developing an online VCIP platform for the subscribers.
How video-based customer KYC (VCIP) works in case of NPS account?
#1 Mobile Application based VCIP
POP are advised to implement a mobile application for VCIP. The mobile application shall provide the facility of taking photograph, scanning, and uploading documents via DigiLocker. Subscribers shall able to do signature during VCIP. The usage of this application will be done by the authorized person of the POP. Key Features of Mobile Application is given below.
Key Features of Mobile Application VCIP – NPS
- Seamless, real-time and secured with end-to-end encryption.
- Video enabled process with time stamping and geolocation tagging to ensure the location is India.
- The Quality of recording will be smooth & jerk free.
- The Facility of taking photograph and uploading documents.
- Instant bank account verification.
- Signature upload facility during VCIP while on-boarding.
- Withdrawal document upload facility.
- Facility to upload other documents for verification in the application.
POP needs to take care of security and privacy requirement. The application needs to undergo audit and stringent guidelines to be followed to guard against spoofing and hacking attempts.
#2 Non Mobile Application based VCIP
POP can also implement a non-mobile application based VCIP. It can be a desktop-based application where a Video-based customer identification process takes place after taking consent from the subscriber. The activity log is required to be maintained with a timestamp. Key features of Non-Mobile Application based VICP are given below.
Key Features of Non Mobile Application based VCIP – NPS
- Random Question Answer & facility to capture responses from NPS subscribers.
- Video of customer shall be easily re-cognizable and shall not cover face in any manner.
- Online document verification facility for the subscriber.
- Photograph given in the document should match with subscriber during VCIP.
- It can be video call facility with end-to-end encryption.
- Instant bank account verification facility for the subscriber.
- Photo and signature upload facility during on boarding.
- Withdrawal document upload facility at the time of exit or annuity.
Safety and security measures needs to be taken care by POP during & after VCIP.
As per me VCIP for NPS is very good initiative and it will defiantly help subscribers. The entire process will eliminate need of physical visit to POP. The subscriber can use this facility of contact less KYC for NPS.
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For more information, visit NSDL – NPS circular section.