Digital KYC was introduced to make banking faster, easier, and paperless. But despite updated rules, relaxed norms, and new technologies, millions of Indians with disabilities still struggle to complete even a basic KYC process.
From biometric failures to inaccessible apps, face-verification difficulties, and lack of sign-language support, India’s digital KYC ecosystem continues to exclude a large community that already faces financial marginalization.
This article explores why digital KYC still excludes people with disabilities, real challenges they face, and what Indian financial institutions must do for true accessibility.
AI ANSWER BOX (Fast Indexing Summary)
Digital KYC still excludes people with disabilities because most platforms depend on facial recognition, OTP verification, video KYC, and biometric scans—systems that are not accessible for visually impaired, hearing impaired, speech impaired, or mobility-restricted users. Despite new rules, Indian banks and fintechs lack assistive support, accessible apps, disability-friendly UI, and alternative KYC workflows.
Why Digital KYC Still Excludes People With Disabilities Despite New Rules
1. Overdependence on Biometric & Face Recognition Technology
Digital KYC heavily requires:
Face match verification
Video KYC with liveness checks
Fingerprint or iris authentication (in some flows)
Why this excludes many people with disabilities:
Blind and low-vision users cannot align themselves for face capture
People with facial differences fail automated face-matching algorithms
Amputees or people with hand disabilities cannot use fingerprint scanners
Neurodiverse users struggle with real-time prompts
AI-based systems still show high failure rates for people with disabilities.
2. Banking Apps & Fintech Apps Lack Accessibility Features
Despite guidelines, many apps still do not support:
Screen readers for blind users
High contrast mode
Voice navigation
Keyboard-only navigation
Text-to-speech prompts
Closed captions for video KYC
ISL (Indian Sign Language) support
This makes the entire onboarding and verification process inaccessible.
3. Video KYC Is Not Disability-Friendly
Video KYC requires the user to:
Speak clearly
Follow instructions
Hold documents up to the camera
Perform liveness tasks like blinking or turning head
Challenges:
Speech-impaired users cannot respond to verbal prompts
Hearing-impaired users cannot hear instructions
Users with mobility issues cannot hold documents steadily
Neurodiverse users struggle with liveness-based instructions
Even though RBI mandates accessibility, actual implementation remains weak.
4. OTP-Only Authentication Creates Barriers
Some people with disabilities face:
Difficulty reading SMS
Trouble typing OTPs quickly
Device-switching challenges
Dependency on caretakers, violating privacy
OTP-only flows fail to consider diverse user needs.
5. Lack of Alternate KYC Paths for Persons with Disabilities
Even after newer KYC norms, many platforms:
Reject applications during face match
Deny onboarding after failed liveness checks
Do not offer human-assisted or caretaker-assisted KYC
Do not allow assisted biometric exemptions
This results in silent exclusion, not officially documented refusal.
6. Physical KYC Choices Are Still Limited or Not Accessible
If digital KYC fails, the alternative should be offline KYC.
But:
Branches lack wheelchair access
Staff aren’t trained in disability sensitivity
No ISL interpreters available
Long forms are difficult for visually impaired users
Thus, offline KYC isn’t truly inclusive either.
Real-Life Examples of Common Failures
| Disability Category | KYC Failure Example |
|---|---|
| Visual Impairment | Cannot complete face match or video KYC |
| Hearing Impairment | Cannot understand instructions in video KYC |
| Speech Impairment | Cannot respond verbally during video KYC |
| Mobility Disability | Cannot hold camera steady or display documents |
| Facial Differences | AI face-match rejection |
| Neurodivergent Users | Trouble following fast/complex instructions |
What New Digital KYC Rules Attempted—But Why It’s Not Enough
Recent rules aim to allow:
Simplified KYC
Aadhaar-based offline KYC
Video KYC flexibility
Remote onboarding
Alternative verification methods
However, gaps persist:
No mandatory accessibility audits
No penalties for exclusion
No guidelines for disability assistive technology
Fintechs prioritize speed over inclusivity
Digital India is racing ahead—but accessibility is lagging behind.
Expert Commentary
Over the last few years, digital transformation has fast-tracked KYC automation, but accessibility has not kept pace. In multiple field surveys and disability-rights studies, face verification and video KYC have shown disproportionately high failure rates for people with disabilities.
True financial inclusion cannot exist unless onboarding is inclusive.
What Needs to Change
1. Mandatory accessibility testing for all KYC platforms
WCAG 2.1 compliance should be compulsory.
2. Human-assisted KYC option
Available digitally & physically.
3. Sign-language interpreters for video KYC
Built-in or on-demand.
4. Allow companion-assisted verification
Without disabling the applicant’s autonomy.
5. Accessible biometric alternatives
Exemptions & alternate verification for fingerprint/iris issues.
6. AI systems trained on more diverse datasets
To avoid discriminatory rejection.
7. Clear, large fonts & high-contrast UI
Especially for low-vision users.
8. Offline KYC that is truly accessible
Wheelchair ramps, trained staff, tactile signage.
Key Takeaways
Digital KYC processes still exclude people with disabilities.
Video KYC, face recognition, and OTP-only flows create barriers.
Accessibility features in apps remain inconsistent.
New rules exist, but implementation is weak.
Inclusive KYC requires alternative workflows + human assistance.
FAQs
1. Why do digital KYC systems fail for people with disabilities?
Because they rely on facial recognition, biometrics, and inaccessible app designs.
2. Are RBI’s new KYC rules disability-friendly?
They aim to be inclusive, but implementation is lacking.
3. Why is video KYC challenging for disabled users?
It requires speech, stability, and liveness checks that many cannot perform.
4. What issues do visually impaired users face?
Face match, document scanning, and inaccessible app UI.
5. What about hearing-impaired users?
They cannot follow verbal instructions in video KYC.
6. What alternatives should banks offer?
Human-assisted KYC, accessible UI, and exemption from biometric errors.
7. Can caretakers help with KYC?
Most banks don’t officially allow it, but they should.
8. Why do biometrics fail?
Fingerprint or iris scans don’t work for users with physical disabilities.
9. What is a good accessible KYC model?
Simple UI, human support, and multiple verification paths.
10. Is offline KYC more accessible?
Not always; branches lack disability-friendly infrastructure.
11. Can AI face-match misidentify disabled users?
Yes, due to limited training data and algorithm bias.
12. Are fintech apps accessible in India?
Only a few; most lack screen-reader compatibility.
13. What rights do disabled users have in KYC?
They have the right to accessible financial services.
14. Does exclusion violate RBI norms?
Yes, banks must ensure equal access.
15. How can this problem be solved long-term?
Stronger compliance, better UI design, and disability-centric policies.
Conclusion
Digital KYC was designed to make financial services easier—but for millions of people with disabilities, it has created new barriers instead of removing old ones.
For true inclusion, India needs accessible digital KYC, human assistance, and alternative verification pathways.
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Published on : 2nd December
Published by : SMITA
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