SEBI Update: Digital KYC Now Accessible for Persons with Disabilities (PwD)

In a significant move towards financial inclusion, the Securities and Exchange Board of India (SEBI) has directed all financial intermediaries to make digital KYC (Know Your Customer) processes accessible for persons with disabilities (PwDs).

This decision follows a Supreme Court judgement on April 30, 2025, which emphasised equal access to financial services for all, including PwDs.

What Does the New Circular Say? 

SEBI’s latest circular applies to all registered intermediaries — including stockbrokers, mutual funds, portfolio managers, and others. These entities are now required to ensure that their services, especially those involving digital KYC and account opening, are accessible to PwDs.

To help intermediaries follow these new norms, SEBI has also updated its FAQs related to KYC and account opening for persons with disabilities. These are now available on the SEBI website.

Key Changes in KYC Rules for PwDs

• PwDs can open accounts independently: If a person with a disability is of sound mind and legally allowed to sign contracts, they can open accounts in their own name.
• Guardianship provisions: If the PwD is unable to sign or requires a guardian by law, accounts can be opened in the guardian’s name using a valid guardianship certificate.
• Digital KYC must be accessible: Intermediaries must follow digital accessibility standards and help PwDs complete video KYC, if needed.
• Flexible ‘liveliness’ checks: For those who cannot blink or move their eyes, other forms of live verification — such as nodding, showing documents on screen, or facial expressions — are accepted.
• Thumb impressions allowed: PwDs can submit thumb impressions as their signature, either wet-signed or uploaded digitally with an e-sign.
• Disability details can be noted: Intermediaries may record the type and percentage of disability during the KYC process.
• Manual review of rejected KYCs: If KYC is rejected due to accessibility issues, the intermediary’s Principal Officer must review the case manually. 

Use of Central KYC Registry  

SEBI has also allowed the use of KYC data from the Central KYC Registry, provided the client gives consent. This will help streamline processes for PwDs.

Read more on: SEBI Permitted Cat II AIF to Invest in Listed Debt Securities

Conclusion 

SEBI’s updated rules mark a strong step toward inclusive finance in India. By ensuring that digital KYC is accessible, the regulator is helping persons with disabilities participate fully in the financial markets.
 
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