Most digital KYC methods in India come with a catch that fintechs often learn about only after they have built around it: accounts opened with OTP-based Aadhaar eKYC carry hard limits. Video KYC is the fully remote method that removes them.
Why OTP-based eKYC has a cap
RBI treats Aadhaar OTP-based e-KYC done without meeting the customer as a lighter form of identification. Under paragraph 25 of the Reserve Bank of India (Non-Banking Financial Companies – Know Your Customer) Directions, 2025, an account opened this way in non-face-to-face mode is subject to these limits:
- The aggregate balance of all the customer’s deposit accounts must not exceed ₹1 lakh.
- The aggregate of all credits in a financial year must not exceed ₹2 lakh.
- For borrowal accounts, only term loans may be sanctioned, and they must not exceed ₹60,000 in a year.
- The account cannot operate for more than one year unless the lender completes full identification or V-CIP.
These Directions replaced the 2016 KYC Master Direction for NBFCs on 28 November 2025. RBI’s Directions for banks carry equivalent provisions under their own paragraph numbers.
What V-CIP requires for face-to-face equivalence
The Video-based Customer Identification Process (V-CIP) is covered in paragraphs 26 and 27 of the same Directions. A process that meets the prescribed standards is treated “on par with face-to-face CIP”. Video KYC under these rules is a live, consent-based video interaction between the customer and an authorised official of the regulated entity. The customer’s documents are checked during the call, a liveness check confirms that a live person is present rather than a photo or recording, the customer’s live location is captured, and the recording is stored with a date and time stamp.
| Aadhaar OTP eKYC (non-face-to-face) | Video KYC (V-CIP) | |
|---|---|---|
| Deposit balance | Up to ₹1 lakh in aggregate | No such limit |
| Credits in a financial year | Up to ₹2 lakh in aggregate | No such limit |
| Loans | Term loans only, up to ₹60,000 in a year | No such limit |
| How long the account can run | One year, unless full identification or V-CIP is completed | No such limit |
| Who is involved | The customer alone | The customer and an authorised official on a live video call |
When lenders actually need it
For lenders, the binding limit is usually the loan ceiling: an NBFC that onboards a borrower with OTP-based eKYC alone can sanction only term loans, up to ₹60,000 in a year. Anything larger needs video KYC or another full identification route. The one-year limit matters too. Even a small account opened on OTP-based eKYC needs a planned upgrade step before its first anniversary. Video KYC is also the right choice for entities that want one consistent, fully digital onboarding flow, instead of sending some customers through a lighter eKYC path and others to a branch.
Veriqos’s Face Match & Liveness API is the component most directly relevant to building a V-CIP flow, because liveness detection is a required part of the process, not an optional add-on.
This article summarises paragraphs 25 to 27 of the RBI’s KYC Directions for NBFCs as updated on 29 December 2025. It is a general explanation, not compliance advice. Check the current text before relying on it.
More about Video KYC
To learn more about Video KYC, explore our Video KYC Solution and Face Match & Liveness Detection API, or talk to our team. For the official source, see the RBI’s KYC Directions for NBFCs.
