OTP-Based KYC (OKYC) Policy
1. Purpose:
To establish a secure, digital framework for verifying customer identity and address through OTP-based e-KYC, ensuring compliance with RBI regulations.
2. Policy Guidelines:
a. Customer Declaration:
- Customers must declare that no other OTP-based e-KYC account has been or will be opened in non-face-to-face mode with any other Regulated Entity (RE).
- KYC data uploaded to the Central KYC Registry (CKYCR) must explicitly mark the account as OTP-based e-KYC to prevent misuse.
b. Account Restrictions on Borrowal Accounts:
- Only term loans up to ₹60,000 per year are permitted.
c. Account Validity:
- Accounts opened via OTP-based e-KYC are valid for up to one year.
- Verification through the Video Customer Identification Process (V-CIP) or re-verification using e-KYC is mandatory for account extension.
- Failure to complete Customer Due Diligence (CDD) within a year will result in the blocking of further loan issuance.
d. Fraud Prevention:
- OTPs, transaction alerts, and updates must be sent only to the Aadhaar-registered mobile number.
- Post-CDD, alternate mobile numbers cannot be linked without a robust and board-approved due diligence process.
3. Compliance and Monitoring:
Adherence to RBI regulations is mandatory, with periodic reviews to incorporate regulatory updates.
Member Of
Fintech Association for Consumer Empowerment
and
Digital Lenders Association of India
