LexPRAGYA PRASUN & ORS. versus UNION OF INDIA & ORS.
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[2025] 4 S.C.R. 2851 : 2025 INSC 599 Pragya Prasun & Ors. v. Union of India & Ors. (Writ Petition (Civil) No. 289 of 2024 With Writ Petition (Civil) No. 49 of 2025) 30 April 2025 [J.B Pardiwala and R. Mahadevan,* JJ.] Issue for Consideration 1. Whether the present digital KYC / e-KYC / video-KYC framework is inaccessible to persons with disabilities? 2. Whether the regulatory authorities (RBI, SEBI, TRAI, PFRDA, IRDAI, DoT) have failed to ensure reasonable accommodations and accessibility in digital KYC processes? 3. Whether the mandatory requirement of capturing a “live photograph” and conducting a “liveness check” (through blinking, reading text on screen, etc.) is discriminatory and violative of Article 21 read in conjunction with Articles 14, 15 and 38 of the Constitution? 4. Whether the absence of clear standards checks and accessibility criteria in digital KYC guidelines violates the Rights of Persons with Disabilities Act, 2016 and RPwD Rules, 2017? 5. Whether directions can be issued to the Respondents to formulate appropriate rules and guidelines for conducting Digital KYC/ e-KYC / Video KYC process through alternative methods, to ensure that the process is more inclusive and accessible to all persons with disabilities? Headnotes† Disability Rights – Accessibility of Digital Services – Digital KYC – Facial Recognition – “Live Photograph” and “Liveness Check” Requirements – Reasonable Accommodation – Equality and Non-Discrimination – Regulatory Obligations of RBI, SEBI, IRDAI, PFRDA, TRAI, DoT – Inter-operable Accessibility * Author 2852 [2025] 4 S.C.R. Supreme Court Reports Standards – Know Your Customer (KYC) Norms – Framework of – Explained: Held: In an effort to combat illegal activities and money laundering, the Central Government through the PMLA and the Rules, 2005, mandated that all financial and banking institutions conduct client identity verification, maintain comprehensive records, and report relevant information to the Financial Intelligence Unit – India – Pursuant to the same, the Reserve Bank of India issued the Master Direction on Know your Customer (KYC), 2016 – The Master Direction on KYC prescribes the framework for Customer Due Diligence (CDD) procedures and outlines the digital KYC process under Chapter VI and Annex I, respectively. Additionally, Clause 18 of the MD on KYC introduced the Video based-Customer Identification Process (V-CIP) enabling remote customer verification through secure, real-time video interaction – As a result, multiple sectors – Including banking, telecommunications, insurance, and mutual funds – Have adopted digital KYC as a mandatory component of their CDD or Customer Identification Program (CIP) obligations, thereby facilitating identity verification of prospective customers in compliance with regulatory requirements – According to the petitioners, many Regulated Entities refuse to conduct offline verification even when customers submit valid proof of possession of Aadhaar – Additionally, the requirement of capturing a live photograph under Option 2 creates a barrier for individuals with facial/eye disfigurements and visual impairments, rendering them unable to complete the digital KYC process. [Paras 12 and 13] Legal framework – Constitutional and statutory provisions placing obligation on Government to enable persons with disabilities to exercise rights equally – Constitution of India – UNCRPD, Arts.9 and 12 – Information Technology Act, 2000 – Rights of Persons with Disabilities Act, 2016, Ss.2(c), 3, 12, 13, 16, 40, 42 and 46 – Purpose of – Explained: Held: The Rights of Persons with Disabilities Act, 2016 marks a paradigm shift from the earlier medical and technical model of disability under the 1995 Act, which carried a significant burden of stigma – The new model recognizes disability as a condition arising not only from impairments but also from physical, mental, intellectual, social, psycho-social, and other barriers that hinder full and effective participation in society – These barriers lie at the heart of the exclusion experienced by persons with disabilities, preventing them from realizing their full potential and participating [2025] 4 S.C.R. 2853 Pragya Prasun & Ors. v. Union of India & Ors. as full and equal members and citizens – A vision enshrined by the framers of our Constitution. [Para 14.4.2] Access to information and communication technology – Section 42 of the Rig
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