On 23-5-2025, the Securities and Exchange Board of India (‘SEBI’) notified legal directive aimed at mandating Accessibility and Inclusiveness of Digital KYC to Persons with Disabilities, aligning with the Supreme Court’s rulings on equal access to financial services.
Key Points:
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The aim is to enable equal access of services to persons with disabilities or persons with any visual impartiality, to make the digital ‘KYC’/ / e-KYC (Know Your Customer) process inclusive and accessible.
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It ensures that the registered financial intermediaries implement verification methods accessible to all, such as alternative digital authentication and thumb impressions.
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The revised FAQs on- ‘Account opening by persons with disabilities’, provided as guidance by SEBI to comply with the standards and helps to make account opening easier for individuals with disabilities.
The circular has been issued in the light of the directives issued by the Supreme Court, on 30-4-2025, in Pragya Prasun v. Union of India, 2025 SCC OnLine SC 993, on the right to digital access is a fundamental right under Article 21 of the Constitution. The Supreme Court directed the financial institutions to adopt alternative verification mechanisms emphasising equal access to financial services, including KYC process The Supreme Court in the ruling highlighted that the financial institutions would have to implement S. 46 of Rights of Persons with Disabilities Act, 2016, putting a timeline of two years on the service providers to establish accessibility mechanisms. This includes ensuring government websites, electronic media, and print media, all are accessible to persons with disabilities.