IFSCA to roll out guidelines for video-based KYC for NRI customers by November

Mumbai, Oct 7 (PTI) The International Financial Services Centres Authority (IFSCA) will issue guidelines on video-based KYC for onboarding Non-Resident Indian (NRI) customers by November, IFSCA Chairman K. Rajaraman said on Tuesday.

Speaking at the sixth edition of the Global Fintech Fest 2025, Rajaraman said that over the next few months, the focus will be on streamlining the KYC process, following directions from Finance Minister Nirmala Sitharaman, who chairs the Financial Stability and Development Council, to make KYC more efficient and flexible.

"A consultation paper on video KYC was released a few months ago and now we are likely to notify (guidelines) by, say, by November, which means that now paper-based applications for opening a deposit account or an investment account and gift would not be required," he said here.

Rajaraman also said that IFSCA is collaborating with the Unique Identification Authority of India (UIDAI) and the Reserve Bank of India (RBI) to introduce a faceless authentication system. UIDAI has already implemented this system domestically, and IFSCA aims to extend similar capabilities to non-resident Indians (NRIs) abroad, enabling them to onboard seamlessly from locations such as San Francisco or Dubai.

"If we can implement this (faceless authentication system) within the next three to four months, NRIs will find it much easier to open accounts, invest, and transact through GIFT City in a fully digital, unassisted manner," Rajaraman said, adding that addressing the KYC challenge remains our top priority in the coming months.

IFSCA is a unified authority for the development and regulation of financial products, financial services and financial institutions in the International Financial Services Centres.

On the newly launched foreign currency settlement system, Rajaraman said it will enable real-time settlements, improve liquidity management, and ensure regulatory compliance.

Earlier in the day, Finance Minister Nirmala Sitharaman officially launched the foreign currency settlement system at GIFT IFSC. Currently, foreign currency transactions are typically settled with a delay of 36 to 48 hours. PTI SP SP MR