In a significant step towards digital banking, the Department of Financial Services (DFS) has launched a pilot project to test the Video Customer Identification Process (VCIP) for Non-Resident Indians (NRIs) in Bahrain, in collaboration with the State Bank of India (SBI).
The initiative aims to leverage technology to improve the ease of living for citizens and ease of doing business, especially for Indians living abroad. Under this pilot, SBI has successfully opened Non-Resident External (NRE) and Non-Resident Ordinary (NRO) accounts for a Bahrain-based customer through VCIP. This marks a first-of-its-kind fully digital account opening journey, enabled by more than seven integrated digital systems.
Following the completion of the process, the customer received welcome messages for both accounts, highlighting a smooth, secure, and paperless onboarding experience without the need for physical presence.
The milestone was achieved with the support of multiple government and regulatory bodies, including the Reserve Bank of India (RBI), State Bank of India, Unique Identification Authority of India (UIDAI), the Ministry of External Affairs, and the Ministry of Electronics and Information Technology (MeitY).
What is Video Customer Identification Process (VCIP)?
Video Customer Identification Process (VCIP) is a digital Know Your Customer (KYC) method that allows banks and financial institutions to verify a customer’s identity through a live video call, without the need for physical presence. It was introduced by the Reserve Bank of India (RBI) to make customer onboarding faster, safer, and fully online.
How VCIP works (in simple terms)
- The customer connects with a bank official through a live video call.
- The customer shows their original identity documents (such as Aadhaar, PAN, or passport) on camera.
- The bank official verifies the person in real time, checks liveness, and matches the face with documents.
- Customer details are validated using secure system integrations (like UIDAI databases).
- The entire session is recorded and securely stored for audit and compliance.
Key features of VCIP
- 100% digital – no branch visit or physical paperwork
- Live interaction – reduces risk of fraud and impersonation
- RBI-approved – legally valid KYC method
- Secure & compliant – follows strict data protection norms
- Fast onboarding – accounts can be opened in minutes
Who can use VCIP
- Resident Indians
- Non-Resident Indians (NRIs) (now being piloted in select countries like Bahrain)
- Individuals opening bank accounts, loans, demat accounts, or other financial products
Benefits of VCIP
- Convenience for customers, especially NRIs
- Faster account opening
- Lower operational cost for banks
- Reduced fraud compared to offline KYC
- Supports paperless and contactless banking
Why VCIP is important
VCIP is a major step in digital banking, helping India move towards seamless, secure, and global financial services. It plays a key role in improving the ease of living and ease of doing business, especially for Indians living abroad.
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