How Video KYC is Transforming Customer Onboarding for NBFCs

Video KYC for NBFCs: The RBI-Compliant Revolution in Customer Onboarding

The day when a borrower had to travel to an NBFC branch, carry original documents, and wait in queue for KYC verification is rapidly becoming history. Video KYC — technically called V-CIP (Video-based Customer Identification Process) — has fundamentally changed customer onboarding for India's lending sector.

What is Video KYC?

Video KYC is a real-time, live video call-based customer identification process conducted by a trained agent of the financial institution. The process allows the agent to verify the customer's identity, authenticate documents, and complete KYC — entirely remotely and without physical presence.

RBI Guidelines for Video KYC

The Reserve Bank of India issued guidelines for V-CIP for regulated entities including NBFCs. Key requirements include:

**Live interaction** — not pre-recorded video

**Liveness check** — to prevent spoofing with photographs

**Document verification** — original documents must be shown on video

**Geo-tagging** — customer's location must be recorded

**Recording and storage** — session must be recorded with timestamp

**Trained agents** — KYC agents must be specially trained

How Video KYC Works: Step by Step

Step 1: Customer Initiates

Customer applies for a loan via the NBFC's mobile app or website and reaches the KYC step.

Step 2: Session Scheduling

Customer selects a convenient time slot for the Video KYC call.

Step 3: Live Video Call

A trained agent connects via live video. The customer shows their Aadhaar, PAN, and face to the camera.

Step 4: Liveness Check

The system performs automated liveness detection to ensure the customer is physically present (not a photo or video).

Step 5: Document Authentication

The agent verifies document details visually and cross-checks with database records.

Step 6: Completion

The session is recorded with timestamp and geo-tag. KYC is marked complete.

Business Benefits of Video KYC for NBFCs

Geographic reach expansion: NBFCs can now onboard customers from any location in India without branch infrastructure

Cost reduction: Video KYC costs 60-70% less than physical KYC per customer

Faster processing: Loan can be sanctioned same day instead of 3-5 days

Fraud reduction: Liveness check and live document verification significantly reduce identity fraud

Better customer experience: Customers appreciate the convenience of home-based onboarding

Dimensions' Video KYC Solution

Video KYC is a core component of Dimensions' [Live Loan platform](/products/live-loan). Integrated with the complete digital lending workflow, Video KYC seamlessly connects to CKYC registration, credit bureau checks, and instant loan sanction — all in a single session.

Contact Dimensions

Frequently Asked Questions

Is Video KYC legally valid for NBFCs?

Yes. RBI's Video-based Customer Identification Process (V-CIP) guidelines make Video KYC legally valid for NBFCs and other regulated financial entities.

What equipment does an agent need for Video KYC?

Agents need a computer or tablet with a webcam, stable internet connection, and the Video KYC software platform. Customer needs only a smartphone with camera.

How long does a Video KYC session take?

A typical Video KYC session takes 5-10 minutes, including document verification, liveness check, and photograph capture.