RBI has introduced essential amendments to the Master Direction on Know Your Customer (KYC) to reinforce its importance in financial transactions and introduce Video KYC as a modern and secure method of customer identification for Banks, NBFCs, and other financial entities. The amendment focuses on improving the Customer Due Diligence (CDD) process through Video KYC and Facial recognition systems, allowing businesses to adhere to CERT-in compliance standards while onboarding new customers. Video KYC is a live visual interaction between two parties that aims to obtain documents required for CDD while ensuring accuracy of data provided. RBI Norms require Regulated Entities to define their customers' onboarding process and categorize them into different risk categories, reducing scams and fake identities by providing reliable customer verification. The amendment also emphasizes the importance of cyber security and resilience frameworks, spoof IP detection, seamless and secure visual infrastructure, end-to-end encryption for protecting customer data, geo-tagging of customer interactions, and face-to-face CIP. CERT-in and VPAT are confidential compliances for Video KYC software, and businesses should prioritize Vulnerability Assessment and Penetration Testing (VAPT) and security audits to ensure the security and authenticity of their video KYC software. Data localization is also crucial to ensure data security and compliance. The amendment aims to enhance security and streamline the KYC process through Video-based Customer Identification Process (VCIP), allowing businesses to adhere to regulatory standards while onboarding new customers.