Introduction
Over the past years, the financial technology (hereinafter referred to as “FinTech”) industry in India recorded an unprecedented growth due to regulatory developments, a swift digitalization process, and the increasing access to financial services. However, this change has not been fairly shared. The inaccessibility of digital platforms still poses a barrier to the access of basic financial and telecommunication services to a significant portion of citizens, especially persons with disabilities (hereinafter referred to as “PwDs”). In response to this, the Supreme Court of India in Pragya Prasun and Ors. v. Union of India and Ors. (2025 INSC 599) issued a historic ruling by stating that an inclusive and accessible digital KYC framework was required. This was shortly followed by the issuance of a compliance circular by the Securities and Exchange Board of India (hereinafter referred to as “SEBI”) on September 25, 2025, to regulated entities to make all platforms digitally accessible under the provisions of the Rights of Persons with Disabilities Act, 2016(hereinafter referred to as “RPwD Act 2016”) and Rights of Persons with Disabilities Rules, 2017 (hereinafter referred to as “RPWD Rules 2017”). These developments are a significant milestone and move towards the achievement of inclusive digital finance in India.
Background: Digital KYC and the Exclusion Dilemma
The digital Know Your Customer (hereinafter referred to as “KYC”) was launched to facilitate efficiency, averting money laundering, and simplifying the process of client onboarding in the financial, telecom, and securities markets. Nevertheless, the process has unintentionally placed handicaps on those with visual disabilities, facial disfigurements, or other disabilities that inhibit them from passing some of the liveness test such as blinking, recognition of a face or reading on screen literature. The Petitioners comprised acid attack victims and a person with visual impairment who claimed that the current KYC procedures were discriminatory and exclusionary and they were therefore denied access to financial and telecom services. They based their challenge on Article 14 and 21 of the Constitution and the RPwD Act, 2016 that ensured equality, dignity, and accessibility of persons with disabilities.
Supreme Court’s Analysis: Accessibility as a Fundamental Right
The Hon’ble Supreme court, while pronouncing the judgment, highlighted that digital inclusion is intrinsic to the right to life and personal liberty under Article 21 and that the State and its instrumentalities have a constitutional duty to ensure access for all. The Court held that the “liveness” criterion-which many institutions had been interpreting as a requirement of blinking or facial movement-must not become an obstacle to access. Rather, covered entities must provide reasonable accommodations, including:
- Alternative identity verification, such as voice or gesture-based checks.
- Offline or physical KYC options, and
- Accessible digital interfaces compatible with recognized accessibility standards, such as IS 17802 standards and WCAG 2.0.
The Court has reiterated that the RPwD Act, 2016 and the RPWD Rules 2017 cast a statutory duty upon both public and private bodies to make their services accessible to persons with disabilities. Referring to the judgments in Vikash Kumar v. UPSC and Rajive Raturi v. Union of India, the Court has again held that accessibility is not charity but a matter of right and a component of equality.
Directions Issued by the Court
The Supreme Court issued elaborate directions to the Central Government, RBI, SEBI, TRAI, IRDAI, and PFRDA to:
- Provide a framework of accessibility standards for digital KYC, e-KYC, and Video-KYC processes that allow for inclusion of persons with blindness or facial disfigurement.
- Modify existing KYC regulations to make provisions for the use of alternative methods of identifying a person’s identity.
- Sensitize public and private establishments on how to assist PwDs in digital onboarding.
- Ensure that all digital financial and telecommunication services meet the requirements of RPwD Act, 2016.
This judgment in effect acknowledged digital accessibility as a right and not a matter of discretion. This places the responsibility squarely on regulators and service providers to proactively design inclusive digital ecosystems.
SEBI’s Response: Compliance Guidelines for Digital Accessibility
In view of the pronouncement by the Supreme Court, SEBI, vide Circular No. SEBI/HO/ITD-1/ITD_VIAP/P/CIR/2025/131 dated September 25, 2025, laid down the Compliance Guidelines for Digital Accessibility. It operationalized the earlier directive issued by SEBI dated July 31, 2025, making accessibility compliance mandatory for all regulated entities under the RPwD framework. The circular mandates that all REs, including stock exchanges, depositories, portfolio managers, mutual funds, and intermediaries, conduct a structured accessibility audit and submit compliance reports to SEBI.
AMLEGALS Remarks
The interplay between the landmark Supreme Court order and SEBI’s 2025 Digital Accessibility Circular reflects a continuous evolution in India’s approach to inclusive digital governance. In embedding accessibility into the very core of financial regulation, India has indeed taken a firm step toward ensuring that technology empowers rather than excludes.
These developments present a compliance challenge and a transformative opportunity for the FinTech ecosystem and an avenue to create digital platforms that are not only secure and efficient but also equitable and human-centered. The message from the judiciary, much like from the regulator is that inclusion is no more an option, it is the very basis of a truly digital India
For any queries or feedback, feel free to connect with hiteashi.desai@amlegals.com