Know your customer (KYC) process is done to establish customer identity for the Issuing Financial Institute (IFI) and to comply with RBI guidelines. As per RBI guidelines, beyond a  specified amount it is mandatory for all users to comply with KYC regulations and furnish required information and documentation. 

Why is KYC required?

KYC verification is required to comply with RBI regulations and to provide account benefits provided by IFI. As per RBI guidelines, there are 2 types of KYCs —  Minimum KYC and  Full KYC.

Minimum KYC benefits

As per RBI guidelines, Real Account Holders (RAH) need to complete Minimum KYC to avail a Issuing Financial Institution (IFI) account capabilities. Minimum KYC allows you limited access to account benefits. An Account Holder with Minimum KYC verification completed can manage the following:

• Add money to your account.
• Maintain balance up to ₹10,000 per month.
• Receive refunds and money from other accounts.
• Spend upto your Minimum KYC limit using any of the allowed channels like ATM, POS and e-commerce.

As per RBI guidelines, Minimum KYC is valid for 24 months from the date of KYC completion. To get complete benefits of Fusion and to continue usage beyond 24 months, you need to complete your Full KYC.

Full KYC benefits

Full KYC provides RAH with full access to account benefits. By becoming a full KYC verified Account Holder, you can manage the following:

• Account balance limit is increased to ₹1,00,000.
• Add money to your account.
• There is no spending limit on your account.
• Transfer money to a bank account or other Account Holders.
• Receive refunds and money from other accounts.
• Spend upto your Full KYC limit using any of the allowed channels like AT M, POS and e-commerce.

Real Account Holder (RAH) KYC

A Real Account Holder (RAH) is any person who uses the banking products created by fintech on Fusion. The Account Holder can on-board Zeta with any of the KYC profiles as directed by the IFI.

Real Account Holder (RAH) KYC requirements

The following table contains a list of KYC details required:

KYC profiles

As per the RBI guidelines, KYC is categorized into the following KYC types based on the business rules and privileges set on the different modes of KYC:

Minimum KYC

Minimum KYC involves verification of the mobile number and submission of a self-declaration of name and unique ID of any OVD such as Passport, Driving License, and Voter ID Card.

Full KYC

Full KYC involves the KYC verification process using different KYC modes. The modes of KYC are E-KYC and Paper KYC.

KYC modes

The following are the different modes of the KYC verification process:

• Paper KYC
• E-KYC
  • Aadhaar OTP KYC
  • Aadhaar Biometric KYC

Paper KYC

A third party agent or an agent from Zeta will visit the Applicant to collect documents. The Applicant is required to submit physical photocopies of the original documents (identity proof and address proof). The photocopies are validated against the original document on the spot. Applicant’s photographs and signatures are also captured.

E-KYC

The electronic KYC verification involves instant verification of identity and significantly lowers the cost of KYC verification. The Aadhaar Card issued by the Unique Identification Authority of India (UIDAI) is used to authenticate the Applicant's identity. The E-KYC service supports Aadhaar OTP KYC and Aadhaar Biometric KYC which are relevant in the IFI KYC context.

Aadhaar OTP KYC

A self-serve mode of KYC where the user punches the Aadhaar number and OTP is delivered to the mobile number that is registered against the Aadhaar number. The OTP is verified and the application data is validated against the Aadhaar details to complete the KYC verification.

Aadhaar Biometric KYC

Aadhaar Biometric is an assisted process where either a third-party agent or an agent from Zeta will visit the Applicant to collect Biometric information. Fusion provides the APK to be used by agents to complete the Aadhaar Biometric KYC. In this process, authentication is completed using biometric input (fingerprint or IRIS scan) and the application data is then validated against Aadhaar details.

KYC limits

The set of rules on different types of KYC and the list of the acceptable transaction and balance limits with respect to Fusion's PPIs are listed below for your reference.

API endpoints

Fusion offers a completely digital KYC verification process. To perform the Account Holder Onboarding process, see  Creating an Account Holder. To update the KYC status of the Account Holder use the following API.

Update KYC Status of an Account Holder

In order that your Account Holders enjoy seamless modern payment experience, it is paramount to update their KYC information. Once you verify the Account Holder's details against the OVD collected, update the KYC status for the Account Holders using the following API endpoint. 

Endpoint URI

Sample

curl -X PUT \
https://fusion.preprod.zeta.in/api/v1/ifi/individualApplications/1158/kycStatus/minimal \
  -H 'Content-Type: application/json' \
  -H 'X-Zeta-AuthToken: {{AUTH_TOKEN}}' \
  -d '{
    "kycDetails": {
        "kycStatus": "MINIMAL",
        "kycStatusPostExpiry": "string",
        "kycAttributes": {},
        "authData": {
            "AADHAAR":123780789022
        },
        "authType": "AADHAAR"
    },
}'

{
  "applicationID": "1158",
  "kycDetails": {
    "kycStatus": "MINIMAL",
    "updateTime": "Jan 6, 2020 7:41:05 AM",
    "expiryTime": "Jan 5, 2021 7:41:05 AM",
    "kycStatusPostExpiry": "SHORTFALL_NON_CORP",
    "authType": "AADHAAR",
    "authData": {
      "AADHAAR": "OyqYXR+TvnRMnCVPIpXe+amOfwWblwORK1cK8qMr7oE="
    },
    "kycAttributes": {
      "reference": "dd4302e0-1da9-4ea2-9948-22f74c2568dcydYKXSknhzbDHcL+3sfXzQ==",
      "aadhaar": "OyqYXR+TvnRMnCVPIpXe+amOfwWblwORK1cK8qMr7oE=",
      "authType": "AADHAAR",
      "kycType": "MINIMAL"
    }
  },
  "headers": {}
}