KYC to be more inclusive, accessible to persons with disabilities, orders SC

In a landmark Judgment on Wednesday, the Supreme Court directed a comprehensive reform of the digital Know Your Customer (KYC) framework, mandating inclusivity and accessibility for persons with disabilities, including acid attack survivors and the visually impaired.

The Bench of Justice JB Pardiwala and Justice R. Mahadevan, while disposing of a batch of petitions, issued 20 specific directions to ensure that e-KYC, video KYC and other digital verification procedures do not exclude or marginalize vulnerable groups.

Pronouncing the judgment, Justice R. Mahadevan observed, “We have recognized the need to reform KYC procedures to make them accessible for persons with disabilities. In this regard, we have issued 20 specific directions. The petitioners, who are survivors of acid attacks and suffer from blindness, were unable to complete the KYC process due to facial disfigurements.”

In a significant constitutional declaration, the Court held that the right to be accommodated in digital systems is a statutory and constitutional entitlement, grounded in Articles 14, 15, 21 and 38 of the Constitution.

“It is States obligation under Article 21 read with Articles 14,15 & 38 of the Constitution of India must encompass the responsibility to ensure the digital infrastructure, government portals, online learning platforms and financial technologies or universally acceptable inclusive and responsive to the needs of all vulnerable and marginalised populations…” the Court observed.

"In today’s digital era, where access to economic opportunities is largely technology-driven, Article 21 must be reinterpreted to reflect the realities of the digital age and address the widening digital divide," the Court stated.

The Bench stressed that substantive equality demands digital systems be designed with inclusivity in mind, ensuring financial technologies, e-governance portals, online education platforms and digital public infrastructure respond meaningfully to the needs of all citizens, especially the disabled and marginalized.

Justice JB Pardiwala, concurring with the judgment, remarked: “Brilliant judgment. Extraordinary judgment! By my Lord. It will go a long way.”

The Court concluded by issuing 20 binding directions to the Centre, regulators, and service providers to align digital KYC frameworks with the Accessibility Code and universal design principles, before disposing of the PIL.

About the PIL

The PIL had been filed by a group of acid attack survivors through Advocate-on-Record Nitin Saluja. It highlighed the difficulties faced by survivors; particularly those with facial burns and vision impairment, when attempting to complete digital KYC procedures, which typically require blinking before a camera to verify “liveness.”

One of the petitioners, a survivor with severe eye and facial injuries had faced rejection while trying to open a bank account at ICICI Bank. The bank initially refused to proceed due to her inability to blink, which is considered essential for live photo capture in the current e-KYC process.

“The present method of conducting Digital KYC/e-KYC hinges primarily on capturing a user’s real-time image or 'live photo' to verify the customer’s identity. However, public and private establishments have interpreted the ‘liveness’ criterion to mean blinking of the eyes,” the petition read.

Case Title: Pragya Prasun & Ors. v. Union of India & Ors. & another connected matter

Download and Read Judgment here