The International Financial Services Centres Authority (IFSCA) has proposed an exciting new option for Non-Resident Indians (NRIs) by expanding its Video-based Customer Identification Process (V-CIP). This is often referred to as “video KYC.” With this new move, NRIs will be able to open bank accounts and access various services in GIFT City without needing to do a physical identity verification.
### What is V-CIP?
V-CIP is a secure method that uses live video calls to help financial institutions confirm a person’s identity. Customers can use documents like Aadhaar, PAN, or other officially recognized IDs during this process. It employs advanced technology such as artificial intelligence for face matching, liveness detection, geo-tagging, and encryption to enhance security and protect customers’ data.
The proposal was shared in a consultation paper issued on July 10, 2025, which aims to update the IFSCA’s guidelines related to Anti-Money Laundering, Counter-Terrorist Financing, and Know Your Customer measures.
This initiative is designed to make GIFT City a more attractive destination for international investors and members of the Indian community living abroad.
### How does the process work?
Here is a step-by-step guide on how the new V-CIP process will work for NRIs:
1. The beneficiary must first provide basic KYC information to the Registered Transfer Agent (RTA) or Asset Management Company (AMC).
2. They need to submit proof of identity (such as Aadhaar, PAN, or other accepted documents) along with their bank account details from any bank in their home country.
3. Once the identity is verified, the customer can open an account in “debit freeze” mode.
4. The account will become fully operational once the first deposit is received and verified from the customer’s bank account.
The new V-CIP framework will be available for NRIs from selected countries, including the US, Japan, South Korea, the UK, France, Germany, Canada, UAE, and Singapore. However, participation will be limited to low-risk NRIs who can provide valid proof of their current address from these eligible countries.
Regulated entities will also need to confirm that the IP addresses and bank details align with the verified locations from which the NRIs are applying.
This new development is a significant step toward simplifying the banking experience for NRIs and enhancing GIFT City’s status as a global financial hub.
