Significance Of Opening A Digital Savings Account Online Through Video KYC

A digital savings account offers unmatched convenience. You can open a bank account through video KYC regardless of your location. While bank account opening without video KYC takes a lot of time, the video KYC mechanism lets you open an account within minutes.

This article elaborates on the significance and benefits of opening a bank account online through video KYC. 

What is a Digital Savings Account?

‘Digital Savings Account’ refers to a feature-rich savings bank account that provides many benefits. Many private banks, such as RBL Bank, offer digital savings accounts to allow anyone to open a bank account in India. So, you don’t have to worry about whether there is a bank near you or not since you can open this account from anywhere in India, provided you have the basic KYC documents and a valid internet connection. 

The RBL Bank Digital Savings Account provides interest rates of up to 6.50%, free fund transfers via NEFT and RTGS, unlimited free cash withdrawals from the bank’s ATMs, and many other benefits.

However, you must attend a video-KYC meeting with the bank’s representative to open this account. The following sections explain the importance of the video KYC process for opening a digital savings account.

The Significance of Opening a Digital Bank Account Through Video KYC

Video KYC saves time and money and makes banking more accessible. The following is the significance of the video KYC process in online bank account opening:

1. Video KYC Saves Time

Imagine how long the process of bank account opening without Video KYC would be. You have to locate the nearest bank branch you want to open an account. Next, you must physically visit the bank with your documents and manually fill out the form. Then you must wait until your application and documents are verified and received.  

Video KYC removes all these hassles from your life by bringing the bank to your fingertips. You can conveniently visit the official website of RBL Bank or download its mobile application to open a bank account online free through Video KYC. 

Unlike bank account opening without Video KYC, you don’t have to visit a bank to open a digital savings bank account. You will be able to save time for other activities. 

2. Video KYC is Legal

Before 2020, the Video KYC process was not legally accepted as a valid method of opening bank accounts in India. So, customers had to visit bank branches to open savings accounts mandatorily. However, thanks to the Finance Ministry’s amendment of the Prevention of Money Laundering (PMLA) Act 2002, the Reserve Bank of India (RBI) allowed the Video-Based Customer Identification Process (V-CIP), a.k.a Video KYC, as a valid customer identification method in January 2020.

The bank captures the customer’s live photo in the Video KYC process. It compares it with the details available in KYC documents, such as Aadhar Card, to open a bank account online. The photo is captured by a bank officer specially appointed for the purpose. 

However, don’t worry if you do not possess an Aadhar Card since banks also accept any identity proof validated by the government. Besides live photo capture, banks also capture the digital signature of applicants while opening the bank account online.

3. Video KYC is Fast and Permanent

The Video KYC process is fully digital. This enables financial institutions to capture vital facial features of their customers and retain them to simplify banking-related transactions. Banks employ Machine Learning (ML) and Artificial Intelligence (AI) technologies to extract data automatically and provide convenient banking services to customers. A study shows that Video KYC reduces the customer onboarding cost by 90%. Moreover, it slashes the turnaround time from 20-30 days to just ten minutes. 

Conclusion

Video KYC-based online bank account opening offers many advantages compared to bank account opening without Video KYC. Since the whole process of account opening takes in front of a specially-appointed bank official, the chances of scams or fraud are zero. Also, Video KYC enables banks to deal with money laundering or other criminal activities better since the biometric information of the customers remains confidential to the bank. Video KYC is the future of banking. If you have yet to experience it, you must consider opening an account with RBL Bank to experience convenient banking solutions.