The Digital Barrier: When Technology Excludes Millions
The Supreme Court of India has called for creating barrier-free digital environments for people with disabilities, yet the financial services sector continues to struggle with implementing inclusive know-your-customer (KYC) procedures. While physical accessibility features like wheelchair ramps and braille instructions have become more common, digital KYC systems remain a significant challenge for millions of Indians with disabilities.
The banking system had shown progress in physical accessibility over the years, including allowing toe impressions for people without hands back in 2008. However, the transition to digital verification has created new barriers that prevent many from accessing essential financial services.
Real Stories of Digital Exclusion
The human cost of inaccessible KYC systems becomes clear through individual experiences. Pragya Prasun, an acid attack survivor, faced rejection when she couldn't blink during a video KYC verification due to facial burns and vision loss in one 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," Prasun recounted.
Her struggle required gathering 25,000 signatures through an online petition before ICICI Bank finally allowed her to open an account. This case eventually led to a two-year Supreme Court battle resulting in 20 directives to financial regulators, including being considerate with disability applications and finding alternatives to "liveness" checks.
Rahul Kelapure, a visually impaired Mumbai resident, faced different challenges. He struggled with digital signatures and presenting his ID card correctly during video KYC. "While I have acquired the skill to sign on paper over years, I have no means to ascertain if the signature is correct on a screen," he explained.
His attempts were repeatedly disconnected when assistants tried to help him position the card, and he couldn't remember his PAN number for verification. Ultimately, it took five attempts to complete his KYC process.
Systemic Gaps and Technological Insensitivity
Following the Supreme Court ruling, regulatory bodies have taken some steps toward improvement. The Securities and Exchange Board of India (SEBI) issued guidelines on digital KYC accessibility, while the Reserve Bank of India modified video-based identification in August 2025, stating that "liveness checks shall not result in exclusion of persons with special needs."
However, significant technological gaps persist. Sumanta Ghosh, Chief Technical Officer at Bandhan Life, identifies several critical issues. Basic assumptions in digital KYC systems create barriers for millions. "Most digital KYC systems assume that consumers can read small text on a screen, hold a phone steady, follow visual instructions, or complete facial 'liveness' checks. For millions of users, these assumptions simply do not hold," explained Harsh Vardhan Masta, Head of Payments at Policybazaar.
Biometric authentication presents particular challenges. Shweta Runwal from Pune described her child with Down's syndrome struggling with both thumbprints and iris scans for Aadhaar registration. "It took multiple re-takes to get her card processed," she said. While RBI now offers face authentication as an alternative, this doesn't help those who cannot obtain Aadhaar cards in the first place.
Simple steps like CAPTCHA verification become nearly impossible for visually impaired individuals or those with cerebral palsy. Similarly, hearing-impaired individuals cannot respond to verbal yes/no questions during video calls. The absence of built-in assistive technologies like screen readers or voice-to-text tools further compounds these challenges.
Pathways to Inclusive Solutions
Experts propose multiple solutions to create truly accessible KYC systems. Krishna Kishore Chukkapalli, MD & CEO of KYC registration agency KFIN, suggests screen-reader support, audio CAPTCHA codes, 200% scalable text without content loss, and time-out leniency. He also emphasizes the importance of document-only fallbacks when biometrics aren't feasible.
Ghosh advocates for alternative liveliness detection methods: "For the KYC process to be truly inclusive, the future must embrace alternative methods for liveliness detection—such as head nods, facial expressions, or other accessible prompts."
Practical measures include allowing trusted aides to assist without treating this as "prompting," accepting disability certificates instead of demanding impossible tasks, and establishing fast-track grievance redressal systems. Swarup Mohanty, vice chairman and CEO at Mirae Asset Investment Managers, revealed they're exploring scanned document assistance and speech-to-text solutions while maintaining dedicated disability desks in every branch.
SEBI's new rules now require regulated entities to publish accessibility statements, establish grievance routes, and appoint nodal officers for digital accessibility compliance. "Track and report KYC failures on account of disability and provide fast-track redressals for customers that are denied access. Inclusiveness should be assessed with the same serious lens as compliance," Masta emphasized.
The Cost and Commitment Challenge
Implementing these changes comes with financial implications. SEBI-regulated entities must hire accessibility auditors before December 14, 2025, with audits completed by April 30, 2026. Vendors have significantly increased prices in response to these requirements.
"We are ready to offer support, which comes at a cost. Since there is an emotional angle to it, vendors who typically charge ₹10-20 lakh for a regular KYC solution are asking for ₹1 crore for special access solution," revealed the chief of a financial services firm who wished to remain anonymous.
Ghosh suggests ecosystem-level investment in assistive digital infrastructure that works across platforms as a cost-effective solution. Masta frames the issue in stark terms: "Accessibility should be in the same non-negotiable vein as cybersecurity. Equal access requires clarity, not ambiguity."
With 26.8 million registered Indians with disabilities according to 2011 data—including 12.2 million who were illiterate and unable to sign—the urgency for inclusive digital infrastructure has never been greater. The Supreme Court's directives and regulatory changes mark progress, but true financial inclusion requires sustained commitment and innovation from the entire financial ecosystem.
