Context:
- The Supreme Court issued directives to revise digital Know Your Customer (KYC) norms to ensure accessibility for Persons with Disabilities (PwDs).
- The Court interpreted Article 21 of the Constitution to include the “right to digital access”, marking a significant step toward inclusive governance.
Key Legal Provisions
- Article 21: Right to life and liberty (now extended to digital access)
- Article 14: Equality before law
- Article 15: Prohibition of discrimination
- Article 38: State’s duty to promote social justice
- Rights of Persons with Disabilities (RPwD) Act, 2016
- Section 42: Mandates accessible electronic and digital media (audio descriptions, captions, sign language, universal design)
- UNCRPD (United Nations Convention on the Rights of Persons with Disabilities): India is a signatory and must ensure equal digital access
Why Are KYC Rules Important?
- Under PMLA 2002 and RBI’s Master Directions (2016), all financial institutions must conduct KYC for:
- Opening bank, trading, or demat accounts
- Accessing SIM cards, pension, insurance, scholarships
- Aadhaar-linked DBT (Direct Benefit Transfers)
- Digital KYC includes Video-based Customer Identification Process (V-CIP), OTP verifications, facial recognition, and written code capture.
Accessibility Challenges Faced by PwDs
- Blind and low-vision users cannot read flashing codes or align cameras without prompts.
- Acid-attack survivors may face rejection due to facial recognition failures.
- Thumb impressions, commonly used by visually impaired users, are not accepted for PAN cards or digital signature validation.
- Lack of assistive tech: No screen readers, audio guides, or tactile features in current KYC systems.
- RBI’s “no prompting” rule prevents human assistance during verification.
Supreme Court Observations
- Accessibility is a constitutional imperative.
- Digital exclusion violates rights under:
- Article 21 (Right to Life and Dignity)
- RPwD Act, 2016
- UNCRPD obligations
- Rajive Raturi v. Union of India (2024) cited: Accessibility central to liberty, mobility, and autonomy.
- Highlighted the digital divide not just for PwDs, but also for:
- Rural users
- Senior citizens
- Economically weaker sections
- Linguistic minorities
Supreme Court Directions
- Digital KYC frameworks must:
- Adopt inclusive design principles
- Allow alternate modes of verification (thumb impressions, assistive tech)
- Comply with ICT accessibility standards (2021, 2022)
- Introduce screen readers, voice navigation, text-to-speech, and real-time assistance
- Reiterated the need for “substantive equality”, not just formal equality
