Union Budget 2020: After the Reserve Bank of India (RBI) approved Video In-Person Verification (IVP) last week to speed up the KYC verification process, expectations of Banking and Fintech industries are high from the upcoming Budget on adoption of digital access to credit via paperless and presence-less onboarding, which is key to drive financial inclusion.
“We emphasised the need for a robust CKYC and Video In-Person Verification, which can go a long way in streamlining KYC checks and speeding up the verification process. Our points in this regard were taken into account while formulating the policies for video IPV that the RBI approved last week,” said bankbazaar.com CEO Adhil Shetty, who attended the second pre-budget consultations of Finance Minister Nirmala Sitharaman with stakeholders from the financial sector and capital markets.
“We emphasised the need for a robust CKYC and Video In-Person Verification, which can go a long way in streamlining KYC checks and speeding up the verification process,” he added.
After a tumultuous 2019, to facilitate the generation of demand through easy paperless credit, the capital market and financial sector players expect formulation of policies to allow quick presence-less onboarding through Aadhaar OTP and increase in instant savings/investment and loan disbursal limits after OTP-based registration.
“We also put forth points on introducing policies that allow access to UIDAI for Regulated Entities,” said Shetty, adding, “We highlighted the need to raise the limits on savings and loan accounts opened instantly via OTP up from the current limits of Rs 50,000 and Rs 60,000 respectively.”
Apart from investments and loan disbursal, expectations are there that the facility of verification through Aadhaar-based OTP may also be extended to other financial products.
“We also stressed on the need to enable credit cards accounts to be opened paperlessly with OTP verification,” said Shetty.
Optimistic with the approval of IVP-based KYC as suggested, Shetty said, “Reforms along these lines would streamline account verification, democratise finance, and enable faster access to financial products such as bank deposits, loans, and credit cards.”