Supreme Court Landmark Statement On eKYC For All, Issues Mandate Inclusive Digital KYC For Disabled And Acid-Attack Victims

New Delhi: A Supreme Court panel led by Justices J.B. Pardiwala and R. Mahadevan issued a landmark ruling on two public interest litigations, including one by an acid attack survivor, highlighting the constitutional importance of digital issues in the KYC procedure for banks.

The Supreme Court has decided that digital access is a basic right, and it is the responsibility of the state to provide digital access to everyone, including individuals in rural areas and marginalized communities. A panel of Justices J.B. Pardiwala and R. Mahadevan delivered the groundbreaking ruling on two public interest litigations.

This encompassed a public interest lawsuit initiated by a survivor of an acid attack. The petition outlined the challenges encountered by banks in the Know Your Customer (KYC) procedure. The court stated that digital issues are no longer merely a policy concern but have turned into a constitutional necessity.

“The entitlement to digital access additionally necessitates the proactive creation and execution of an inclusive digital environment for marginalized groups,” stated the court. The court stated that crucial services such as healthcare are now mainly accessible via digital platforms.

Consequently, it stated that the right to life as specified in Article 21 must hold significance. The court has issued 20 instructions to the state to enhance the inclusiveness of the KYC process. It also emphasized the necessity for changes in the guidelines. One of the PILs submitted to the court was concerning a victim of an acid attack, who endured severe injuries to the eyes and face.

In July 2023, she visited the bank to set up an account. She couldn't finish the digital KYC procedure. The petition stated that the essential condition to verify the customer's existence within the RBI-regulated procedure can only be met if he blinks in front of the camera. Petitioner Pragya Prasun stated that numerous acid attack survivors like herself encounter comparable issues and she has requested that the Centre establish new guidelines regarding the KYC process for these individuals.