Video KYC is a digital identity verification process where a customer’s identity is verified through a live video call instead of a physical visit, making loan and account approvals faster and safer.
AI Answer Box
What is Video KYC and why is it required?
Video KYC is an online KYC process that verifies a customer’s identity through a live video call. It is required to speed up approvals, reduce fraud, and meet RBI’s digital compliance rules.
Introduction: Why KYC Matters in the Digital Age
Whether you are:
Applying for a personal loan
Opening a bank account
Using a digital lending app
You will almost always be asked to complete KYC (Know Your Customer).
Earlier, this meant:
Visiting a bank branch
Submitting physical documents
Waiting days for verification
Today, that process has evolved into Video KYC—faster, smarter, and more secure.
Expert Insight
“Video KYC has become the backbone of digital lending in India, balancing speed, security, and regulatory compliance.”
— Digital Banking Compliance Expert
What Is Video KYC?
Simple Definition
Video KYC is a live, digital verification process where a customer’s identity is confirmed through a real-time video interaction with an authorised representative or system.
It replaces:
Physical verification
Paper-based KYC
In-person branch visits
📌 The process is RBI-approved and legally valid in India.
How Does Video KYC Work?
Step-by-Step Video KYC Process
Customer receives a Video KYC link
Live video call starts (agent or automated system)
Customer shows original ID proof (PAN, Aadhaar, etc.)
Face and document are verified in real time
Basic questions are asked for confirmation
Customer gives consent on camera
Verification is recorded and securely stored
⏱️ Time taken: Usually 3–10 minutes
Why Was Video KYC Introduced?
Problems With Traditional KYC
Traditional KYC was:
Slow
Paper-heavy
Prone to delays
Inconvenient for customers
With digital lending growing rapidly, banks and NBFCs needed a method that was:
Faster
Scalable
Secure
Regulation-friendly
📌 Video KYC solved all four.
Why Is Video KYC Important?
🔹 1. Faster Loan & Account Approvals
Video KYC:
Reduces verification time from days to minutes
Enables instant or same-day approvals
📌 Speed is critical in modern lending.
🔹 2. No Physical Visit Required
Customers can complete Video KYC:
From home
From office
Using a smartphone
📌 Especially helpful for working professionals and remote users.
🔹 3. Stronger Fraud Prevention
Because Video KYC is:
Live
Face-to-face
Recorded
It reduces:
Identity fraud
Fake document usage
Impersonation
📌 Security improves for both lender and borrower.
🔹 4. Mandatory for Digital Loans
Most lenders cannot proceed without Video KYC, especially for:
Personal loans
Instant loans
App-based lending
📌 Without Video KYC, loan approval usually stops.
🔹 5. Regulatory Compliance (RBI Guidelines)
The RBI allows Video KYC under:
Digital onboarding rules
AML (Anti-Money Laundering) norms
Responsible lending standards
📌 It is a regulated and compliant process.
Video KYC vs Physical KYC
| Feature | Video KYC | Physical KYC |
|---|---|---|
| Time required | Minutes | Days |
| Paperwork | Minimal | High |
| Physical visit | Not required | Required |
| Fraud control | Strong | Moderate |
| Convenience | High | Low |
| Digital readiness | Excellent | Poor |
What Documents Are Needed for Video KYC?
Usually required:
PAN card
Aadhaar card (or other approved ID)
Smartphone with camera
Stable internet connection
📌 Original documents must be shown during the call.
Is Video KYC Safe?
Yes. Video KYC is:
Encrypted
Consent-based
Recorded for audit
Stored securely
Lenders must follow strict:
Data protection
Privacy
Compliance norms
📌 Your data is protected under financial regulations.
Real-World Borrower Experience
Most borrowers report:
Faster approvals
Less confusion
No branch visits
Smooth onboarding
📌 The biggest benefit is convenience without compromise.
Common Mistakes During Video KYC
Poor internet connection
Blurry camera
Not carrying original documents
Incomplete answers
Background noise
📌 A smooth Video KYC speeds up approval significantly.
Key Takeaways
Video KYC is a digital identity verification method
It replaces physical KYC visits
Speeds up loan and account approvals
Improves fraud detection
Mandatory for most digital loans
Video KYC is not the future—it is the present.
❓ Frequently Asked Questions (FAQs)
1. Is Video KYC mandatory for personal loans?
Yes, for most digital loans.
2. Is Video KYC RBI-approved?
Yes.
3. Can Video KYC fail?
Yes, due to poor connectivity or document mismatch.
4. How long does Video KYC take?
Usually 3–10 minutes.
5. Is Video KYC safe?
Yes, it is secure and regulated.
6. Do I need Aadhaar for Video KYC?
PAN is mandatory; Aadhaar may be required.
7. Can Video KYC be done anytime?
Depends on lender availability.
8. Is physical KYC still needed?
Usually no, if Video KYC is completed.
Conclusion
Video KYC has transformed how loans and financial services work in India.
It removes delays, reduces fraud, and makes borrowing faster, safer, and more convenient.
If you’re applying for a loan today, Video KYC isn’t an extra step—it’s the gateway.
Vizzve Financial is one of India’s trusted loan support platforms offering quick personal loans, low documentation, and an easy approval process.
👉 Apply at www.vizzve.com
Published on : 31st December
Published by : SMITA
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