BRD

BRD — KYC Module

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# BRD — KYC Module (Know Your Customer)

## 1. Overview
The KYC (Know Your Customer) module within the Loan Origination System (LOS) governs the identity verification and due-diligence process for all retail lending customers at Acme Bank. This document defines the functional requirements, acceptance criteria, and regulatory mapping for the KYC workflow as mandated by RBI Master Direction on KYC (2016, updated 2023).

## 2. Business Context
Acme Bank processes approximately 12,000 loan applications per month across Home Loans, Personal Loans, and Auto Loans. The current KYC process is partially manual, resulting in an average TAT of 3.2 days for KYC completion. The objective is to reduce TAT to under 4 hours for digital-first customers while maintaining full regulatory compliance.

**Key Drivers:**
- RBI Master Direction on KYC (2016) — mandatory compliance
- CKYC Registry integration for existing KYC records
- Video KYC (V-CIP) as per RBI circular dated Jan 2020
- OVD (Officially Valid Document) acceptance rules per RBI

## 3. Functional Requirements

### 3.1 Customer Identification
- **FR-KYC-001**: System shall accept PAN, Aadhaar, Passport, Voter ID, and Driving Licence as OVDs
- **FR-KYC-002**: System shall validate PAN against ITD database in real-time (response < 3s)
- **FR-KYC-003**: System shall perform Aadhaar OTP-based e-KYC via UIDAI API
- **FR-KYC-004**: System shall check CKYC registry before initiating fresh KYC (avoid duplication)
- **FR-KYC-005**: System shall support Video KYC (V-CIP) for customers who cannot visit branch

### 3.2 OVD Validation Rules
- **FR-KYC-006**: Name on OVD must match application name (fuzzy match ≥ 85% similarity)
- **FR-KYC-007**: Address on OVD must be current address or proof of current address must be separately provided
- **FR-KYC-008**: OVD must not be expired at time of submission
- **FR-KYC-009**: For NRI customers, passport is mandatory as primary OVD

### 3.3 CKYC Integration
- **FR-KYC-010**: System shall query CKYC registry using PAN as primary key
- **FR-KYC-011**: If CKYC record found and < 2 years old, auto-populate customer details
- **FR-KYC-012**: System shall update CKYC registry upon successful KYC completion

## 4. Acceptance Criteria
- AC-01: Given a customer with valid PAN and Aadhaar, when KYC is initiated, then system completes e-KYC within 60 seconds
- AC-02: Given a CKYC record exists and is < 2 years old, when customer applies, then system skips fresh KYC and uses CKYC data
- AC-03: Given name mismatch > 15% between OVD and application, when validation runs, then system flags for manual review
- AC-04: Given V-CIP session, when customer completes video verification, then system records session ID and timestamps per RBI requirement

## 5. Data Inputs / Outputs
**Inputs:** PAN, Aadhaar, OVD scans, customer photo, address proof
**Outputs:** KYC status (Verified/Pending/Failed), CKYC ID, KYC completion timestamp, risk category (Low/Medium/High)

## 6. Regulatory References
- RBI Master Direction on KYC, 2016 (updated Feb 2023)
- PMLA Rules 2005 (as amended)
- UIDAI Aadhaar e-KYC API Specification v2.5
- CKYC Registry — CERSAI Technical Specification v3.1