PYQ Relevance:[UPSC 2022] The Rights of Persons with Disabilities Act, 2016 remains only a legal document without intense sensitisation of government functionaries and citizens regarding disability. Comment. Linkage: Welfare schemes for vulnerable sections of the population by the Centre and States and the performance of these schemes; mechanisms, laws, institutions and Bodies constituted for the protection and betterment of these vulnerable sections. |
Mentor’s Comment: On 30 April, 2025, the Supreme Court’s directive to revise digital KYC norms to ensure accessibility for persons with disabilities (PwDs), recognizing digital access as a fundamental right under Article 21. It highlights legal safeguards like the RPwD Act 2016, challenges faced by PwDs in current KYC processes, and the Court’s emphasis on inclusive, accessible digital infrastructure for marginalized groups.
Today’s editorial discusses the Supreme Court’s order to update digital KYC rules to make them accessible for persons with disabilities (PwDs). This topic is useful for GS Paper II (covering governance, the Supreme Court’s role, and issues related to vulnerable groups like PwDs).
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Let’s learn!
Why in the News?
Recently, the Supreme Court of India directed the revision of digital Know Your Customer (KYC) norms to ensure they are accessible to persons with disabilities (PwDs), especially the visually impaired.
What KYC changes did the Supreme Court direct for PwDs?
- Mandated Accessible Digital KYC Processes: KYC procedures must include accessible design features like screen-reader compatibility, audio cues, and simplified verification steps.
- Alternative Identity Verification Methods: KYC systems must allow thumb impressions, signatures in accessible formats, and alternative ways to verify identity without facial recognition or selfies. Eg: An acid attack survivor unable to use facial recognition can verify their identity using thumb impression linked with Aadhaar and OTP verification.
- Uniform Accessibility Standards Across Institutions: All regulated entities (banks, telecom, SEBI, etc.) must follow a standardized, inclusive KYC frameworkrather than creating their own tests Eg: Every bank and mobile provider must adopt unified, accessible KYC apps that meet 2021 and 2022 ICT Accessibility Standards, ensuring consistency and inclusion.
Which laws protect the rights of PwDs in India?
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Why do banks and other financial and government institutions mandate collecting KYC details?
- Ensures Security: KYC helps identify and verify customers, reducing risks of money laundering, fraud, and terrorism financing. Eg: Under the Prevention of Money-laundering Act, 2002, banks are required to verify identities and report suspicious transactions to the Financial Intelligence Unit.
- Availing Financial and Telecom Services: KYC is a regulatory requirement to access services like bank accounts, SIM cards, demat accounts, insurance, and pension schemes. Eg: A person must complete KYC to open a bank account or activate a mobile number.
- Enables Access to welfare schemes: Digital KYC links individuals to Aadhaar-based Direct Benefit Transfers (DBTs), ensuring targeted delivery of welfare schemes. Eg: Students must complete e-KYC to receive national scholarshcips or access Aadhaar-linked subsidieslike LPG or pensions.
How do current KYC methods exclude PwDs?
- Visual Verification Disadvantage: Steps like reading flashing codes, aligning for selfies, or signing on paper are inaccessible to those with visual impairments or disfigurements. Eg: A blind user cannot complete video-KYC if the app lacks screen-reader prompts or audio guidance for camera positioning.
- Lack of Alternative Biometric Methods: Common alternatives like thumb impressions are not accepted as valid signatures, and PAN cards aren’t issued with them. Eg: A visually impaired person using thumbprint verification may be denied KYC approval due to lack of signature or photo verification.
- Non-Compliant Digital Infrastructure: Most KYC apps and portals violate ICT Accessibility Standards by lacking features like text-to-speech, audio cues, or accessible form inputs. Eg: A KYC website without voice feedback or keyboard navigation makes it impossible for a person using assistive tech to complete the process independently.
Why did the SC link digital access to Article 21?
- Digital Access is Integral to the Right to Life and Dignity: The Court held that in today’s digital era, access to essential services through digital means is part of living with dignity and autonomy. Eg: Denying blind users the ability to complete KYC digitally affects their right to life under Article 21 by limiting access to banking or welfare services.
- Ensures Substantive Equality: The Court emphasized substantive equality, noting that equality is not just about treating everyone the same, but removing barriers for the disadvantaged. Eg: People with visual impairments face unique hurdles with video-KYC, which violates their equal access to services guaranteed under Articles 14 and 21.
- Bridges the Digital Divide: The judgment recognized that digital exclusion impacts not just PwDs, but also rural citizens, elderly people, and linguistic minorities, deepening socio-economic inequality. Eg: During COVID-19, the Court earlier ruled that digital vaccine portals must be accessible, reinforcing the idea that public digital infrastructure must be inclusive.
Way forward:
- Adopt Inclusive Digital Design Standards: Ensure all KYC platforms follow universal design principles with features like screen-readers, voice prompts, and alternative authentication methods.
- Mandate Regulatory Oversight and ComplianceRBI, SEBI, and DoT must monitor and enforce accessibility standards across all regulated entities to guarantee equal digital access for PwDs.
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