SEBI’s New Digital KYC System Makes Process More Inclusive for Persons with Disabilities

Recently, the Securities and Exchange Board of India (SEBI) announced a significant development in digital Know Your Customer (KYC) processes aimed at promoting inclusivity and accessibility for persons with disabilities. This move by SEBI aligns with directives from the Supreme Court emphasizing equal access to financial services for all individuals.

The primary objective behind this initiative is to ensure that persons with disabilities or visual impairments have the same level of access to digital KYC and e-KYC processes as any other individual. SEBI has mandated registered financial intermediaries to implement verification methods that are accessible to everyone, including alternative digital authentication methods and thumb impressions.

To facilitate compliance with these standards, SEBI has provided revised FAQs on “Account opening by persons with disabilities” as guidance for financial institutions. These guidelines are designed to simplify account opening procedures for individuals with disabilities, making the process more accessible and inclusive.

This regulatory directive from SEBI comes in response to a recent ruling by the Supreme Court on digital access as a fundamental right under Article 21 of the Constitution. In the case of Pragya Prasun v. Union of India, the Court underscored the importance of adopting alternative verification mechanisms to ensure equal access to financial services, including the KYC process. Additionally, the Court emphasized the need to comply with Section 46 of the Rights of Persons with Disabilities Act, 2016, within a two-year timeframe, for the establishment of accessibility mechanisms across various platforms, including government websites, electronic media, and print media.

Overall, SEBI’s initiative to promote inclusivity and accessibility in digital KYC processes is a significant step towards creating a more equitable financial environment for persons with disabilities. By implementing these guidelines and directives, financial institutions can ensure that individuals with disabilities have the same opportunities to access and benefit from financial services as the rest of the population. This move reflects a commitment to upholding the rights and dignity of all individuals, regardless of their physical abilities, and underscores the importance of promoting inclusivity and equal access in all aspects of public life.