In line with mutual funds and insurance, PFRDA has done away the requirement of obtaining in person verification (IPV) physically to complete KYC.
In fact, the regulator has allowed point of presence (PoP) and retirement advisors to onboard new clients through video based customer identification process (VCIP).
PFRDA said that intermediaries registered with PFRDA like PoPs and retirement advisors are allowed to do VCIP to onboard new clients, facilitate exit and complete other service related requests of NPS subscribers.
PFRDA believes that VCIP will be hugely beneficial as:
- It will overcome challenges of remote presence and mobility
- It will ease process of onboarding new clients
- It will reduce turnaround time
- Since Aadhaar based OTP authentication is a part of VCIP, the new video KYC will be completely paperless
Requirement for executing VCIP:
- PoPs will have to introduce VCIP on their website and mobile app
- This should facilitate photography, scanning/uploading of documents and obtaining documents from DigiLocker
- The feature should capture time stamping and geo-location to verify physical location of subscribers
- PoPs have to ensure that the process is seamless, real-time, secured and end-to-end encrypted audio-visual interaction with subscribers
- They will have to verify bank account of the beneficiary immediately
- Photo/signature of subscriber has to be uploaded during video KYC while onboarding. During exit, the withdrawal document along with KYC needs to be uploaded for issuing annuity
Other things to keep in mind for doing VCIP
- PoPs will have to take consent of subscribers before starting video recording
- The activity log of the person doing the live video KYC will be stored securely along with time stamping
- The video will have to be easily recognizable and the process will include random question and response from the NPS subscriber including displaying the officially valid document as specified by PFRDA
- The video call must be from the domain of the concerned PoP/retirement advisors and not from a third-party source
