{"id":10045,"date":"2024-05-17T12:05:58","date_gmt":"2024-05-17T12:05:58","guid":{"rendered":"https:\/\/signdesk.com\/in\/?p=10045"},"modified":"2025-09-17T07:09:28","modified_gmt":"2025-09-17T12:39:28","slug":"what-is-in-person-verification-ipv","status":"publish","type":"post","link":"https:\/\/melento.ai\/en-in\/blog\/what-is-in-person-verification-ipv","title":{"rendered":"In Person Verification (IPV) : Everything You Need to Know"},"content":{"rendered":"

Streamlined KYC Verification with IPV Verification<\/b><\/span><\/h2>\n

Amidst the constant evolution of the digital age and the simultaneous rise in fraudulent activities, financial institutions such as mutual fund companies face a myriad of challenges, ranging from breaches to intricate compliance complexities. The imperative for In Person Verification or\u00a0 IPV verification arises from the crucial need to authenticate the identity of individuals and validate the accuracy of their submitted documents. IPV verification is a process used by financial institutions and other regulated entities to verify the identity of individuals presenting KYC documents, minimizing the risk of identity fraud, money laundering, and other illicit activities. Additionally, leveraging CLM software<\/a> enhances the management of IPV verification processes by streamlining workflows, ensuring compliance, and securely handling sensitive documentation.<\/p>\n

What is IPV?<\/b><\/span><\/h2>\n

In-Person Verification (IPV) is a method used by financial institutions and other regulated entities to verify the identity of individuals presenting KYC documents in person. It involves physically meeting the individual and visually confirming their identity against the information provided in their KYC documents, such as a passport, driver’s license, or Aadhaar card. IPV serves as a crucial step in the KYC process, ensuring that the individual’s identity is accurately verified before they are onboarded as a customer or client. Video KYC<\/a> represents a revolutionary approach to remote digital in-person verification, offering users a swift and secure means to complete their KYC verification without the need to visit physical locations.<\/p>\n

IPV SEBI Circular<\/b><\/span><\/h3>\n

The RBI initially introduced Know Your Customer (KYC) guidelines in financial services in 2002. These guidelines, along with Customer Due Diligence (CDD) policies, form an essential component of KYC and In-Person Verification (IPV) procedures, laying the groundwork for a robust anti-money laundering framework. To ensure a smooth and fraud-resistant KYC process, every SEBI Registered Intermediary (RI) is required to gather and validate Proof of Identity (PoI) and Proof of Address (PoA) from investors.<\/p>\n

The Prevention of Money Laundering Act, 2002 (PMLA<\/a>), enacted on 1 July 2005, aimed to curb the illicit use of investment vehicles to conceal unlawfully acquired wealth. Following its implementation, SEBI mandated that all intermediaries assisting clients with investments, including mutual funds, adhere to KYC policies. Additionally, intermediaries were required to develop and enforce anti-money laundering measures in line with regulatory guidelines.<\/p>\n

SEBI issued a circular titled “Clarification on Know Your Client (KYC) and Use of Technology for KYC<\/a><\/span>” on 24th April 2020, introducing amendments to the existing digital KYC protocols, following RBI\u2019s guidelines for video KYC (VCIP). The focus of the circular was primarily on leveraging technological advancements to enhance online KYC procedures. With the introduction of new regulations for Video In-Person Verification (VIPV), SEBI’s digital KYC process has become more expedited and streamlined.<\/p>\n

Since 1 January 2011, KYC compliance has been obligatory for all investors, irrespective of the invested amount. This encompasses various transactions such as new\/additional purchases, switching transactions, and registrations for Systematic Investment Plans (SIPs), among others. As part of the Know Your Customer process mandated by SEBI, all investors are required to undergo IPV verification when opening a Demat or trading account. This prerequisite applies primarily to Non-Resident Indians (NRIs), persons of Indian origin, and sailors, regardless of their current place of residence. Many fund houses offer IPV verification through video chat or recording, ensuring compliance with regulatory standards.<\/p>\n

How to Do IPV Verification Online?<\/b><\/span><\/h2>\n

To conduct Video In Person Verification (VIPV) according to SEBI guidelines, the process unfolds through several straightforward steps:<\/p>\n