Pragya Prasun & Ors. vs Union of India & Ors.

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 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 Rights of Persons with Disabilities Act, 2016 – Scope of – Explained:

Held: Section 13(1) mandates the ‘appropriate government’ to ensure that the persons with disabilities have right, equally with others, to own or inherit property, movable or immovable, control their financial affairs and have access to bank loans, mortgages, and other forms of financial credit – Section 42 of the Rights of Persons with Disabilities Act, 2016, deals with ‘Access to information and communication technology’ – This section requires the appropriate Government to take measures to ensure that: (i) all contents available in audio, print and electronic media are in accessible format; (ii) persons with disabilities have access to electronic media by providing audio description, sign language interpretation and close captioning; (iii) electronic goods and equipment which are meant for everyday use are available in universal design – Section 46 provides ‘time limit for accessibility by service provides’ – According to this provision, the service providers whether Government or private shall provide services in accordance with the rules on accessibility formulated by the Central Government under section 40 within a period of two years from the date of notification of such rules: Provided that the Central Government in consultation with the Chief Commissioner may grant extension of time for providing certain category of services in accordance with the said rules. [Paras 14.4.6, 14.4.9, 14.4.10] Non-Accessibility – KYC Verification – Persons with disability – Rights of Persons with Disabilities Act, 2016 – Purpose defeated:

Held: Though digital KYC has benefitted the general public by making verification processes faster and more efficient, persons with blindness and low vision continue to face significant barriers in accessing and completing these procedures – Many digital platforms are not compatible or accessible to persons with various disabilities, and collectively amount to a denial of equal access and violate the accessibility mandates under the Rights of Persons with Disabilities Act, 2016 and results in economic and social marginalization – To combat this discrimination, governments and private entities must ensure that digital services comply with Web Content Accessibility Guidelines (WCAG) and other accessibility standards – Further, legal frameworks should impose stringent requirements for digital inclusion, ensuring that no individual is denied access to essential services on the basis of disability – Thus, it is clear that as per international standards and the Rights of Persons with Disabilities Act, 2016, digital services are expected to be inclusive and accessible to all users, regardless of ability. [Para 15] International Law – Disabled Rights – Explained: Held: India signed the United Nations Convention on the Rights of Persons with Disabilities, 2006, on 30th March, 2007 and ratified it on 1st October, 2007, and the Convention was enforced in India from 3rd May 2008 onwards – It places the following three important obligations on each State Party: (i) To respect the rights and freedoms of persons with disabilities; (ii) To protect individuals with disabilities from rights violations by others; (iii) To fulfil these rights by taking appropriate legislative, administrative, and policy measures – India adopted the Incheon Strategy in 2012 – It offers the first set of regionally agreed inclusive development goals aimed at making the rights of persons with disabilities a reality in the Asia – Pacific region – Notably, ICT (Information and Communication Technology) accessibility is specifically referenced in Goal 3 of the strategy – This goal emphasizes the need to enhance access to the physical environment, public transportation, knowledge, information, and communication systems for persons with disabilities. [Paras 14.2.1 and 14.3]

Interpretation – Right to Life – Article 21 – Bridging the Digital Divide – Technological Realities – Considered:

Held: In the contemporary era, where access to essential services, governance, education, healthcare, and economic opportunities is increasingly mediated through digital platforms, the right to life under Article 21 of the Constitution must be reinterpreted in light of these technological realities – The digital divide-characterized by unequal access to digital infrastructure, skills, and content – Continues to perpetuate systemic exclusion, not only of persons with disabilities, but also of large sections of rural populations, senior citizens, economically weaker communities, and linguistic minorities – The principle of substantive equality demands that digital transformation be both inclusive and equitable – State’s obligations under Article 21– Read in conjunction with Articles 14,15 and 38 of the Constitution – Must encompass the responsibility to ensure that digital infrastructure, government portals, online learning platforms, and financial technologies are universally accessible, inclusive and responsive to the needs of all vulnerable and marginalized populations – Bridging the digital divide is no longer merely a matter of policy discretion but has become a constitutional imperative to secure a life of dignity, autonomy and equal participation in public life – The right to digital access emerges as an intrinsic component of the right to life and liberty, necessitating that the State proactively design and implement inclusive digital ecosystems that serve not only the privileged but also the marginalized, those who have been historically excluded. [Para 17]

Directions Issued – Mandatory Incorporation of Accessibility Standards – Periodical Accessibility Audit – Provision of Alternative KYC Modes – Implementation of OTP Based e-KYC authentication – Dedicated Grievance Redressal Mechanisims — Monitoriting and enforcement:

Directions were issued to Respondent authorities/Ministries to make the process of digital KYC accessible to persons with disabilities, especially facial / eye disfigurements due to acid attacks and visual impairments [Para 18]