FM amends PMLA to offer clarity on Digital KYC: ET
Yesterday, the Finance Ministry amended parts of the Prevention of Money Laundering Act (PMLA), 2002 to pave the way for different modes of KYC - including digital and video KYC - for Banks, Financial Institutions and Telecoms.
While the Ministry hasn't exactly sanctioned Video KYC, the amendment to the Act makes it possible for regulators like the RBI to make Video KYC an acceptable way of capturing customer details.
Speaking to the Economic Times, Wriju Ray - co-founder and CBO at IDfy - said “The notification from the government brings in the different modes through which full customer details can be captured, Aadhaar eKYC, electronic documents which are digitally signed and digital KYC.”
The amendments have also added electronic documents besides physical documents, which will now allow regulated entities to capture full customer details through eKYC as well, removing the need for physical papers and photos.
The industry has been waiting patiently for regulators to sanction latest KYC technologies like Video KYC and Digital KYC, which will help make the KYC process as efficient as the rest of their businesses while keeping its costs low and viable.
IDfy provides cutting-edge AI-driven Digital KYC solutions, including Video KYC, for leading Banks, NBFCs, Fintechs, and Telecoms.
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