Video banking software is the system a bank uses to deliver branch-like services, such as account opening, loan checks and service requests, on a live video call. The customer joins from an app or browser and waits in a lobby, a bank official admits them, and the call can be recorded; for V-CIP, into storage the bank owns or leases. For banks and non-banking financial companies (NBFCs), the Reserve Bank of India (RBI) sets technical standards for one kind of video banking call: video KYC, which it calls V-CIP (Video-based Customer Identification Process).
Adding video calls to your bank's app?
VideoSDK gives you the video layer for video banking: a waiting lobby where your official admits the customer, a geo-tag recording template that shows the coordinates your app sends, and delivery of recordings to your own cloud bucket. A new account comes with a $20 credit.
What is video banking software?
Video banking software connects a customer and a bank official on a live, two-way video call and sends the call record to the bank's systems. A complete video banking platform has four parts: the customer's app or browser page, a waiting lobby, the official's call screen with screen share, and recording with logs that feed the bank's systems.
We found no definition of "video banking" in the RBI KYC Directions or the outsourcing Directions for commercial banks and NBFCs. The KYC Directions' technical standards (para 27) apply to the V-CIP call only; the outsourcing Directions apply to the vendor arrangement whatever the call type.
Where do Indian banks use video banking?
Indian banks and NBFCs use video banking across the customer journey: onboarding, KYC, loan checks, advice and service.
| Use case | What the software must do | Rule that applies |
|---|---|---|
| Video onboarding (new account) | Liveness, face match, PAN capture, geo-tagged recording | V-CIP, KYC Directions paras 26 and 27 (what V-CIP means) |
| Video re-KYC | The same checks, linked to the account | V-CIP for eligible customers, para 26 |
| Video PD for loans | Recording, document screen share | No RBI video rule found; follow your credit policy (video PD guide) |
| Relationship manager, advisory and video branch calls | Scheduling, queue, screen share, case link | No RBI video rule found |
| Insurer KYC calls | Real-time, consent-based video interaction | IRDAI's video-based identification process (VBIP), AML/CFT Master Guidelines, 2022 para 3.17 (VBIP guide) |
If you plan V-CIP, design for the onboarding and re-KYC rows first; a system built to paragraph 27 of the RBI KYC Directions is a strong base for the other calls.
Must-have video banking software features
Video banking software for an Indian bank needs a lobby, geo-tagged recording, bank-owned storage, encryption, screen share, identity checks, IP controls, transcripts and webhooks, drawn from paragraph 27 of the RBI KYC Directions, 2025 (V-CIP) and from what an official needs on any call.
| Feature | Why a bank needs it |
|---|---|
| Queue, lobby and scheduling | The official admits or denies the customer; queue routing and booking are often built in the bank's app |
| Recording with geo-tag and timestamp | V-CIP recordings must carry live GPS coordinates and the date and time (para 27(1)(iv)) |
| Recording to the bank's own storage | For V-CIP, the bank must keep data in India and, with cloud, own it (paras 27(1)(i) and 27(3)(i)) |
| Encryption | V-CIP needs encryption from device to host (para 27(1)(ii)); DPDP rule 6 lists encryption among example safeguards |
| Screen share and documents | The official walks the customer through forms and terms |
| Liveness, face match and OCR | V-CIP needs liveness or spoof detection and face matching (para 27(1)(v)) and a clear PAN image (para 27(2)(xi)) |
| IP and location controls | V-CIP must be able to block IPs outside India and spoofed IPs (para 27(1)(iii)) |
| Transcripts and summaries | Complaint handling, quality checks and audit trails |
| Webhooks, APIs and activity logs | Link each call to its CRM case; keep the official's activity log (para 27(3)(ii)) |
Co-browsing, e-signature, a full agent console and analytics dashboards may be separate products or your own build; ask each vendor which it ships.
Which RBI and DPDP rules apply to video banking software?
Three sets of rules shape video banking software in India: the RBI KYC Directions, 2025 for the V-CIP call, the RBI outsourcing Directions, 2025 for the vendor contract, and the Digital Personal Data Protection (DPDP) Rules, 2025 for personal data. Paragraph numbers are from the commercial bank texts.
| Rule | What the rule says |
|---|---|
| KYC Directions para 27(1)(i) | Hosting: the technology infrastructure sits in the bank's own premises and connects from its own secured network domain. With cloud, the bank owns the data, all data including video moves to its own or leased servers right after the call, and the provider "shall retain no data" |
| KYC Directions para 27(1)(ii) to (v) | Encryption from device to host, alteration-proof consent, India-only IPs, GPS and time on recordings, liveness and face match |
| KYC Directions para 27(1)(viii) | Vulnerability assessment, penetration testing (VAPT) and a security audit by CERT-In empanelled auditors, before rollout and periodically |
| KYC Directions para 27(3) | All V-CIP data and recordings stored in India; activity log kept with the official's credentials |
| Outsourcing Directions, financial services chapter (paras 15 and 17) | Decisions on KYC compliance for opening deposit accounts cannot be outsourced; the bank stays responsible for its provider and customer data |
| Outsourcing Directions, IT chapter (paras 56, 69, 79 to 83, 92) | For material IT outsourcing, including cloud: incident reporting, "storage of data only in India (as applicable) as per extant regulatory requirements", an exit plan, the data lifecycle |
| DPDP Rules, 2025 rules 6, 7 and 15 | Safeguards such as encryption and logs kept a year; breach notice to affected people and the Data Protection Board, with a detailed report within 72 hours; transfers abroad on government conditions. These apply from about May 2027, 18 months after the November 2025 notification (rule 1(4)) |
NBFCs use the same paragraphs in their KYC Directions; their outsourcing Directions use paras 15, 17, 34, 61, 74, 84 to 88 and 97. Small finance banks use paras 27 and 28 of their KYC Directions. For commercial banks, software acquired "on a licence or subscription basis" is outside the IT outsourcing chapter (para 5(2)(v)), while cloud services can fall inside it; ask your compliance team which side your deal is on. The RBI's 2018 payment data circular covers payment-system data, not video recordings. Our RBI KYC guidelines cover the full V-CIP text.
How does video banking work?
In a video banking call, the customer opens the bank's app and waits in a lobby, a bank official admits them and runs the call, the call is recorded, and the record reaches the bank's systems. For V-CIP on cloud, the bank must own the data and move it to its own or leased servers right after the call (KYC Directions para 27(1)(i)).
- The customer opens the bank's app and allows camera, microphone and, for V-CIP, location.
- The customer waits in the lobby while the bank's app finds a free official.
- The official admits the customer and runs the call, sharing forms on screen.
- The call is recorded, with GPS coordinates and a timestamp for V-CIP.
- For V-CIP, the recording moves to the bank's own or leased storage in India.
- Webhooks update the case in the CRM, loan system or core banking.
Build, buy or use an SDK for video banking software?
Build video banking software only if you have media engineers and a reason to run your own servers, buy a finished product when your flow matches it, and use a video SDK for your own screens without running media servers.
| Factor | Build from scratch | Buy a finished product | Build on an SDK |
|---|---|---|---|
| Where the V-CIP stack runs (para 27(1)(i)) | Your premises | Check the vendor's hosting | Usually the SDK vendor's cloud (confirm hosting options); ask compliance |
| Control of screens and workflow | Full | Limited to the product's settings | Full, in your app |
| Who holds recordings | You | Check the vendor's storage against para 27(1)(i) | Your bucket, if the SDK delivers there; ask about fallback storage |
| Exit (outsourcing paras 79 to 83) | No vendor to exit | Plan data export and migration | Your app stays; you replace the video layer |
Our build vs buy guide goes deeper for V-CIP.
What drives the cost of video banking software?
Vendors price video banking software in different ways, so ask each to price these six drivers separately:
- Officials online at the same time (seats), or call minutes.
- Recording minutes and how long you keep the files.
- Identity checks per case: liveness, face match and OCR.
- Integrations with the CRM, loan origination and core banking.
- VAPT and security audits (para 27(1)(viii)).
- Languages and support hours.
How to evaluate video banking solution providers
Ask video banking solution providers these eight questions, each tied to a rule (commercial bank numbering). Our video KYC compliance checklist has the full V-CIP list.
- Can recordings go straight to our servers or cloud account in India, with nothing kept by you, and what fallback storage do you use if ours fails (paras 27(1)(i) and 27(3)(i))?
- Can you block connections from outside India and spoofed IPs, and stamp GPS and time on recordings (paras 27(1)(iii) and (iv))?
- Which liveness and face match checks run, with what accuracy evidence (para 27(1)(v))?
- Is data encrypted from device to host, and is consent logged so it cannot be altered (para 27(1)(ii))?
- Will you accept clauses on our audit rights, RBI inspection and subcontractors (outsourcing paras 34 and 69)?
- Will you report cyber incidents fast enough for us to tell RBI within six hours of your detection (outsourcing para 56)?
- What is your exit plan for our data and recordings if we leave (outsourcing paras 79 to 83)?
- Will you support our VAPT by a CERT-In empanelled auditor (para 27(1)(viii))?
Build video banking on VideoSDK
VideoSDK (videosdk.live) is a video API and SDK: your team builds the bank's app and workflow, and VideoSDK carries the video, recording and call events of your video banking platform. Its docs cover:
- A waiting lobby where the official admits or denies the customer.
- A geo-tag recording template that shows the coordinates your app sends.
- Recordings delivered to your own AWS S3, Azure Blob or GCP bucket, with optional recording encryption under your own key, which protects the stored file (not together with transcription and summary processing on the same API key).
- Screen share from desktop browsers, real-time transcription and a whiteboard.
- Face match, face spoof detection, OCR and Geo IP restriction, each on the Enterprise plan.
These are building blocks: whether a vendor-hosted media path meets paragraph 27(1)(i) for V-CIP is a decision for your compliance team.
This server-side function opens one room per banking case, sets recording to start automatically and closes the room if recording fails.
// Server side only: the token is signed with your API key and secret.
export async function openCaseRoom(caseId, attempt, token) {
const res = await fetch("https://api.videosdk.live/v2/rooms", {
method: "POST",
headers: { Authorization: token, "Content-Type": "application/json" },
body: JSON.stringify({
customRoomId: `case-${caseId}-${attempt}`, // opaque CRM case ref, no PAN or name
webhook: {
endPoint: "https://bank.example.com/videosdk/webhook",
events: ["participant-joined", "participant-left", "recording-*", "session-ended"],
},
// One session per room: V-CIP needs a fresh session after a drop (para 27(2)(ii)).
autoCloseConfig: { type: "session-end-and-deactivate", duration: 60 }, // ends calls at 60 min
// Recordings go to the bucket in your storage config. For geo-tagged V-CIP, set
// autoStartConfig.recording.templateUrl to the geo-tag template.
autoStartConfig: { recording: { onFailure: { waitTime: 30, action: "close-room" } } },
}),
});
if (!res.ok) throw new Error(`Room not created: ${res.status} ${await res.text()}`);
return res.json(); // includes roomId
}
We ran it in Node 22 against the live Create Room API: settings read back with defaults filled in, a repeat call returned the same room, and a bad token threw a 401. We did not join a room, so automatic recording, closing the room on a recording failure, the one-session rule and the geo-tag template follow the docs and were not observed.
For the product view, see the video banking solution page and our video KYC API comparison.
Frequently asked questions
Is video banking software the same as video KYC?
No. KYC is the identity check; video KYC (V-CIP) runs it on a recorded live video call. It is one call type the software runs, and only that call carries the paragraph 27 standards.
Is video banking allowed in India?
Yes, for V-CIP: the RBI lets banks and NBFCs use it for new customers and KYC updates of eligible customers (KYC Directions para 26). For other video banking calls we found no RBI video rule; check with your compliance team.
Can a bank use normal video conferencing software for banking?
For advice calls, possibly, if it meets bank security policy. For V-CIP it must meet paragraph 27: infrastructure on the bank's premises that connects from its own network, data moved to the bank's own or leased servers after the call with nothing kept by the provider, India-only IPs and geo-tags.
Is it safe to do video KYC?
The RBI sets safeguards for every V-CIP call in paragraph 27(1) of the KYC Directions, from encryption and liveness checks to security audits by CERT-In empanelled auditors. How safe a given flow is also depends on how the bank builds and tests it.
Planning video banking for your bank or NBFC? Talk to us about your flow, or sign up and get API keys to try the video layer.