You could instead do how other exchanges do. Hold your id to the webcam.
I dont think any Indian exchange ask you to hold your ID to webcam.
without this option also we can verify the documents by confirming it through the official sites where you can get full details about the proof which users submit so their is no need for webcam type id proof user holding id cards.
If u provide Aadhar no., which official site(s) will give u associated PAN, Mobile No. & Bank A/C No.?
Generally, for KYC verification at banks, either customer has to visit the bank branch or bank executive visit the customer for paperwork. But, Bitcoin exchanges in India are verifying customers online. I wonder HOW?
User's Photo, Aadhar No. (with scanned copy of Aadhar card), PAN No. (with scanned copy of PAN card), Mobile No. (verified with SMS/Call) and Bank A/C No. are taken. But, how is it verified that the given Photo, Aadhar No. & PAN No. correspond to the given Mobile No. & Bank A/C No.?
What I meant to say is can not identity theft be an issue to these exchanges?
If you are proving your bank account details what more proof do they want and from what i understand it is not that easy to start a fake bank account and if you are planning to fake something you have to fake everything from identity card to bank accounts in order to fool the bitcoin exchanges which is highly unlikely to happen and the troubles you can get into faking these things is not that worth to do so.
U may create an account using stolen ID & fake bank details, because as long as u r not withdrawing, exchange can not verify the bank details. Now, u may deposit stolen money to exchange and withdraw it in bitcoin. Exchange will never no from which account(s) u r depositing till an FIR is lodged. By that time, the bitcoin is gone.