Digital KYC remains a nightmare for most people with disabilities

Even today, e-KYC checks keep people with disabilities out of the financial system despite regulatory safeguards

- Khyati Dharamsi

From wheelchair ramps to braille and audio instructions, the financial services industry has more or less been complying with demands for equal rights for people with disabilities over the years. In 2008, for instance, the banking system permitted toe impressions for people who lost both hands. However, a key blindspot remains around know-your-customer infrastructure.

Take the case of Pragya Prasun, an acid attack victim who couldn't blink on e-KYC video call due to her facial burns and loss of vision in her left eye. “Bank employees said I couldn’t open a bank account in my name because I couldn't blink. It is an RBI regulation for digital KYC. I reached out to ICICI Bank via their social media channels but there was no reply until I received 25,000 signatures for my online petition.” Prasun ultimately could open an account with the bank.

This was followed by a two-year battle in the Supreme Court, which issued 20 directives to financial regulators in India, such as being considerate with applications of people with disabilities and looking for alternatives to the “liveliness” check. This forced the Reserve Bank of India and the Securities and Exchange Board of India to fix parts of the digital KYC ecosystem. That said, significant gaps remain. Mint Money spoke to people with disabilities to understand the hurdles they continue to face.

What has changed?

The Supreme Court ruling called for barrier-free digital environments for people with disabilities. Following this, Sebi issued guidelines on accessibility and inclusiveness of e-KYC, while RBI altered video-based identification in August, saying: “The liveliness check shall not result in exclusion of persons with special needs.”