Open a Bank Account at Home: Opening an account with SBI or any other bank under the RBI in India has now become incredibly easy. People can open a bank account in their own name, their children’s names, or any family member’s name from the comfort of their home. Recently, the RBI announced through a post on its X platform that with the help of Video KYC, anyone can open a new bank account or update their KYC from anywhere, anytime. Only a few necessary documents need to be shared.
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How does Video KYC work?
According to the RBI, Video KYC is a completely secure and valid process. In this process, an authorised bank official interacts with the customer via a live video call and verifies their identity. This process requires a CKYC number, Aadhaar card, PAN card, or identity documents available in DigiLocker. The advantage of Video KYC is that the customer does not need to visit the bank, and the account opening process becomes faster and simpler. This facility is available during the bank’s designated hours.
What is CKYC, and why is it important?
CKYC stands for Central KYC. It is a central database that securely stores the KYC information of customers of institutions such as banks, insurance companies, and NBFCs. When a person completes KYC for the first time, they receive a 14-digit unique number, which is called the CKYC or KIN number. The biggest advantage of CKYC is that once KYC is done, there is no need to repeatedly submit documents for new bank accounts, insurance, or investment products. Simply providing your KIN number is sufficient, and the account or service can be easily obtained, provided there are no changes in the customer’s information.
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Which institutions require CKYC?
All financial institutions under the control of RBI, SEBI, IRDAI, and PFRDA fall under the purview of CKYC. This includes banks, credit card companies, demat accounts, insurance companies, mutual funds, and pension services.
How is CKYC completed?
When a customer avails services from a bank or financial institution, the institution registers their KYC information with CERSAI. The following documents are typically required for this:
PAN card, proof of identity and address (Aadhaar, passport, driving license, voter ID, etc.), and a passport-sized photograph. After the KYC process is complete, the customer is provided with a KIN number via SMS or email.
This new rule has made opening a bank account and updating KYC details easier, faster, and more secure, all from the comfort of your home.