The Supreme Court of India (“SC”), in a landmark judgment, has directed the Reserve Bank of India (RBI), SEBI, TRAI and other authorities to ensure that digital Know Your Customer (KYC) processes are made accessible to persons with disabilities, particularly those with visual impairments or facial disfigurements due to acid attacks. The Court held that existing digital KYC methods—such as requiring eye blinking or live photographs—exclude many persons with disabilities, violating their fundamental rights under the Rights of Persons with Disabilities Act, 2016 and *Article 21 of the Constitution. The court emphasized that the right to life must be interpreted in light of the digital age, where access to essential services, education, and financial systems is largely digital, making inclusivity in digital infrastructure a constitutional mandate.
Therefore, to make the process of digital KYC accessible to persons with disabilities, especially facial / eye disfigurements due to acid attacks and visual impairments, the SC has directed the RBI, SEBI, TRAI and the Central Government authorities to design their KYC templates or customer acquisition forms to capture disability type and percentage of the customer and appropriately record as part of the account records so as to provide them accessible services or reasonable accommodations. They are also directed to provide clear instruction to all regulated entities (“REs”) (public as well as private entities) to accept image of thumb impression during Digital KYC process. All REs should be mandated to follow evolving accessibility standards, undergo periodic accessibility audits by certified professionals, and involve persons with blindness in user acceptance testing during the development or modification of apps, websites, and digital features. The REs should provide the following options:
- for sign language interpretation, closed captions, and audio descriptions for visually and hearing-impaired users.
- for customer onboarding forms to record the type and percentage of disability, enabling them to provide appropriate accommodations.
- for thumb impressions as valid identification during the digital KYC process, thus offering non-discriminatory alternatives to the standard face or eye-based verification systems.
Additionally, the REs must do the following:
- To procure or develop digital platforms, apps, and software that comply with the Bureau of Indian Standards (BIS) accessibility norms and adhere to Web Content Accessibility Guidelines (WCAG) 2.1 and the Guidelines for Indian Government Websites (GIGW). Also, REs must
- To cooperate in developing a mechanism for KYC data sharing through the Central KYC Registry (CKYCR), with customer consent, to avoid repeated verification hurdles while paper-based KYC should remain a valid alternative, especially for individuals unable to complete the digital process due to accessibility barriers.
- To operate disability-specific helplines offering step-by-step voice or video assistance during the KYC process. in addition to a system for human review of rejected applications due to accessibility-related issues.
- To have dedicated grievance redressal mechanism must be established to address accessibility complaints, along with a system for human review of rejected applications due to accessibility-related issues.
Further, the SC directed the RBI to issue guidelines enabling alternative modes of digital identity verification that do not rely on visual or facial cues and therefore, the REs should be instructed to adopt alternative methods of “liveness” detection beyond the conventional eye-blinking requirement, ensuring that digital KYC is inclusive and user-friendly. Blinking should not be mandatory in video-based KYC (V-CIP) procedures and the KYC Master Direction should be amended to expand the use of OTP-based e-KYC authentication for in-person verification.
- A dedicated grievance redressal mechanism must be established to address accessibility complaints, along with a system for human review of rejected applications due to accessibility-related issues.
- Finally, all personnel of REs are to undergo disability awareness and sensitivity training through standardized e-learning modules, promoting a more inclusive and empathetic approach across service delivery channels.
Source: Reserve Bank of India
