Video based Customer Identification Process (VCIP) for NPS: PFRDA Circular dated 06.10.2020
PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY
B- 4/A, Chhatrapati Shivaji Bhawan,
Qutub Institutional Area,
Katwaria Sarai, New Delhi-110016
CIR No.: PFRDA/2020/46/SUP-CRA/1 8
Date: October 06, 2020
All stakeholders under NPS
Subject: Video based Customer Identification Process (VCIP) for NPS.
PFRDA in its endeavor to make the subscriber on-boarding , exit , processing of service requests and contribution deposits seamless and subscriber friendly , has been constantly introducing new modes of subscriber KYC and authentication processes such as OTP/ eSign, Offline Aadhaar based KYC, third party reliance for KYC, Paperless on-boarding , e- exit for eNPS Subscribers , e Nomination , D Remit etc.
2. In continuation of such efforts, it has now been decided to permit intermediaries registered with PFRDA to use Video based Customer Identification Process (VCIP) for the purpose of on boarding, exit or any other service request related to NPS.
3. The envisaged benefits of VCIP are as under –
i. In the new normal world post COVID, VCIP overcomes the challenges of remote presence, limited mobility, contactless services , social distancing norms etc.
ii. It eases the process of on-boarding/ exit I other service requests, as the Subscriber verification is carried out without the need of physical presence of Subscribers before Point of Presence (PoPs)/Nodal officers .
ii. It optimizes the turnaround time of account opening , execution of exit and processing of other service requests.
iii. It provides the opportunity for expanding the reach of NPS since account opening process is paperless, instantaneous, convenient and cost effective.
iv. Several PoPs which have recently been registered with PFRDA are functioning online and do not have any physical presence across locations. VCIP shall enable these PoPs to source Subscribers under NPS with greater ease, service them and carry out exit process with proper due diligence.
v. Since OTP/eSign based authentication is a part of VCIP, the process is paperless.
4. While the PoPs registered with other Financial Sector Regulators may comply with VCIP guidelines issued by those regulators, the POPs which are registered solely with PFRDA and wish to adopt VCIP, shall adhere to the process given in the Annexure.
5. The PoPs, in association with Central Record Keeping Agencies(CRAs) are advised to build an online platform for developing VCIP in the interest of subscribers at the earliest.
6. The duties and responsibilities of POPs are detailed in Regulation 15 of PFRDA (Point of Presence) Regulations 2018.
(K. Mohan Gandhi)
Basic features of VCIP under NPS
A. Mobile Application based VCIP
- POPs implement their own mobile application for undertaking VCIP.
- This application shall facilitate taking photograph, scanning of documents , upload of OVD (Officially Valid Document) through Digilocker/other OVDs as specified by PFRDA, capturing the signature during VCIP in live environment.
- The usage of the application is only by authorized person of the PoP and not by any 3rd party.
- The application shall also have features of random action initiation for Subscriber’s response to establish that the interactions are not prerecorded . Further, the application should have time stamping and gee-location tagging to ensure physical location in India etc.
- PoPs shall ensure that the process is seamless , real-time, secured, end-to-end encrypted audio-visual interaction with the subscriber and the quality of the communication is adequate to allow for establishing the identity of customer beyond doubt.
- PoPs shall carry out the liveliness check in order to guard against spoofing and other fraudulent manipulations . POPs shall carry out software and security audit and validation of their App performing VCIP .
- PoPs can add additional safety and security features , other than prescribed above.
- PoPs should ensure Instant bank account verification through penny drop, to verify the beneficiary bank details is mandatory .
- The photo/signature of the subscriber is to be uploaded during VCIP while On-boarding. During exit, the withdrawal document along with KYC needs to be uploaded for the purpose of issuing annuity by Annuity Service Providers. The soft copies of CSRF needs to be generated and shared with CRA and the subscribers . For rest of services , the subscribers can upload required documents for verification by PoPs through VCIP.
B. Non Mobile Application Based VCIP:
- PoPs through their authorized official, specifically trained for this purpose, may undertake live VCIP of an individual subscriber/applicant , after obtaining their informed consent. The activity log along with the credentials of the person performing the VCIP shall be stored securely along with time stamping for easy retrieval and scrutiny.
- The VCIP shall be only in a live environment.
- The VCIP shall be clear and undisturbed. Further, the NPS Subscriber/applicant in the video shall be easily re-cognizable and shall not be covering their face in any manner.
- The VCIP process shall include random question and response from the NPS Subscriber/applicant including displaying the OVD as specified by PFRDA in its CSRF/Exit Form/Service request forms.
- PoPs shall ensure that photograph of the Subscriber provided in KYC documents/PRAN card/CSRF , as the case may be, matches with the Subscriber during VCIP.
- Video call must be from the domain of the concerned PoP and not from a third-party sources.
- PoPs should ensure Instant bank account verification through penny drop, to verify the beneficiary bank details is mandatory.
- PoPs can add additional safety and security features, other than prescribed above.
- The photo/signature of the subscriber is to be uploaded during VCIP while On-boarding . During exit, the withdrawal document along with KYC needs to be uploaded for the purpose of issuing annuity by Annuity Service Providers. The soft copies of CSRF needs to be generated and shared with CRA and the subscribers . For rest of services , the subscribers can upload required documents for verification by PoPs through VCIP .
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