Digital KYC Must Be Accessible To Persons With Disabilities, Blinking Not Mandatory For Liveness Check: Supreme Court Directs RBI, Govt Under RPwD Act & Art 21 - 2025-05-03

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Supreme Court Mandates Accessible Digital KYC for Persons with Disabilities, Citing RPwD Act and Right to Life

New Delhi: In a significant ruling reinforcing the rights of persons with disabilities (PwDs), the Supreme Court of India has directed the Union Government, the Reserve Bank of India (RBI), and other regulatory bodies to overhaul the digital Know Your Customer ( KYC ) processes, ensuring they are inclusive and accessible. Hearing petitions from acid attack survivors with facial disfigurements and a visually impaired individual, a bench comprising Justices J.B. Pardiwala and R. Mahadevan held that inaccessible digital KYC violates the Rights of Persons with Disabilities Act, 2016 (RPwD Act) and the fundamental right to life with dignity under Article 21 of the Constitution.

Background: Digital Barriers to Essential Services

The petitions, filed by Pragya Prasun & Ors. and Amar Jain , highlighted the substantial difficulties faced by PwDs in completing mandatory digital KYC / e- KYC / Video KYC processes required for accessing essential services like banking, telecommunications, financial investments, and government schemes.

The petitioners, including acid attack survivors unable to blink due to severe eye burns and an individual with 100% blindness, argued that current digital KYC norms often rely on visual cues like eye-blinking for "liveness" checks, require reading text on screen, or involve inaccessible websites and applications incompatible with screen readers or assistive technologies. These barriers effectively excluded them from participating independently in the digital economy and accessing their rights.

Petitioners' Plea for Inclusion

The petitioners argued that the existing digital KYC infrastructure: * Lacked alternative methods for "liveness" verification beyond blinking. * Failed to comply with accessibility standards (like WCAG and GIGW) for websites and apps, making navigation and form-filling impossible for visually impaired users. * Did not universally accept thumb impressions as digital signatures. * Featured inaccessible biometric devices. * Suffered from a lack of sensitivity and training among officials assisting with KYC . * Prohibited necessary prompting or assistance during video KYC (V-CIP).

They sought directions for formulating accessible guidelines, implementing reasonable accommodations, clarifying "live photograph" requirements, permitting offline alternatives, and sensitizing personnel, invoking their rights under the RPwD Act and Article 21.

Respondents Acknowledge Need for Accessibility

The Union Government, RBI, SEBI, DoT, PFRDA, and IRDAI acknowledged the petitioners' grievances and expressed commitment to enhancing accessibility. While detailing existing regulations (like PMLA) and KYC options (including offline methods, V-CIP flexibility, paper-based KYC for exceptional cases), they generally agreed on the need to address the specific barriers highlighted. RBI clarified that blinking was not the sole mandatory method for liveness checks in V-CIP, and DoT noted that paper-based KYC was recently allowed for PwDs as an exception. SEBI and PFRDA highlighted options like physical KYC and the use of thumb impressions in certain contexts.

Legal Framework: Accessibility as a Right, Not Charity

The Court extensively reviewed the legal framework underpinning the right to accessibility:

* Constitution of India: Preamble (Justice, Liberty), Article 21 (Right to Life and Dignity), Article 41 (State's duty towards disabled).

* International Law: UN Convention on the Rights of Persons with Disabilities (UNCRPD), particularly Article 9 on Accessibility , and the Incheon Strategy.

* RPwD Act, 2016: Emphasizing definitions of "barrier" and "reasonable accommodation," the mandate for equality and non-discrimination (Sec 3), right to financial access (Sec 13), and accessibility requirements for information, communication, technology, and services (Sec 40, 42, 46).

* Accessibility Standards: National Policy on Universal Electronic Accessibility , WCAG, and Guidelines for Indian Government Websites (GIGW).

The Court cited key precedents like Rajive Raturi v. Union of India (affirming accessibility as a fundamental right), Re: Recruitment of visually impaired in Judicial Services (calling the RPwD Act a 'super-statute'), and Disabled Rights Group v. UoI (highlighting barriers in education).

Court's Analysis: Digital Access Intrinsic to Right to Life

The Bench strongly condemned the digital exclusion faced by PwDs, stating that inaccessible KYC processes violate the core principles of the RPwD Act and Article 21. The Court observed:

> "Bridging the digital divide is no longer merely a matter of policy discretion but has become a constitutional imperative to secure a life of dignity, autonomy and equal participation in public life. The right to digital access, therefore, emerges as an intrinsic component of the right to life and liberty..." (Para 17)

The Court found that the current digital KYC systems, failing to accommodate the needs of PwDs, create barriers that amount to discrimination and hinder their full participation in society.

The Verdict: Comprehensive Directions for Inclusive KYC

Disposing of the writ petitions, the Supreme Court issued a comprehensive set of directives to ensure digital KYC accessibility:

Mandatory Accessibility Standards: All Regulated Entities (REs) must follow prescribed accessibility standards, with nodal officers appointed for compliance.

Accessibility Audits: Periodic audits by certified professionals and user testing involving PwDs are mandatory for apps/websites.

Alternative Liveness Checks: RBI to guide REs on adopting alternatives to eye-blinking for verifying liveness (e.g., facial movements, voice).

V-CIP Clarification: RBI to clarify that V-CIP does not mandate eye-blinking.

Disability Data Capture: KYC forms must capture disability details to facilitate reasonable accommodations.

Thumb Impression Acceptance: Clear directions for accepting thumb impressions in digital KYC .

Paper-Based KYC : DoT to ensure paper-based KYC remains an accessible alternative.

Assistive Features: Provide options like sign language, captions, and audio descriptions.

Alternative Formats: Develop Braille , easy-read, and voice-enabled formats for services.

ICT Standards Compliance: REs must procure/design devices and software compliant with BIS accessibility standards.

WCAG/GIGW Compliance: All websites, apps, and digital platforms must comply with WCAG 2.1 and GIGW.

C KYC R Sharing: Mechanism for customers to authorize sharing of KYC data via Central KYC Registry.

Grievance Redressal: Dedicated mechanism for PwDs to report accessibility issues.

Human Review: Mechanism for human review of KYC applications rejected due to accessibility challenges.

Dedicated Helplines: Helplines offering voice/video support for PwDs during KYC .

Awareness Campaigns: RBI to run campaigns on alternative KYC methods.

Sensitization Training: Mandatory disability awareness training for RE officials.

Monitoring: RBI to ensure strict adherence to all guidelines and directions.

This judgment marks a crucial advancement in digital inclusion, mandating systemic changes to ensure persons with disabilities can access essential services on an equal footing with others.