Why the promise of inclusion breaks at digital KYC

The International Day of Persons with Disabilities was observed on 3 December, drawing attention to the reality that nearly 2% of India’s population lives with some form of disability. To serve this community, the government set up the department of empowerment of persons with disabilities on 12 May 2012, making it responsible for policies, rights, schemes, and institutional support.

The financial sector, too—nudged by court rulings—has taken steps towards greater inclusion, but the rapidly expanding digital ecosystem around know-your-customer (KYC) remains a glaring blind spot. Given that KYC is mandatory and portability of KYC is still not smooth, the struggle for persons with disabilities only increases.

For many, this is where the system breaks down. Take Pragya Prasun, an acid-attack survivor who could not blink during an electronic KYC video call due to facial burns and loss of vision in one eye. She had to make multiple follow-ups before she could finally open a bank account. Rahul Kelapure, who is visually impaired, was asked to sign on a screen with his finger as part of his e-KYC. The experience was anything but smooth.

Digital KYC has simplified life for most, but it urgently needs multiple options to cater to people with different kinds of disabilities. This is where institutions are struggling. Costs have shot up: KYC tech vendors who once charged ₹10-20 lakh for standard solutions now quote nearly ₹1 crore for accessibility-compliant versions, as no single modality works for all disabilities.

Khyati Dharamsi examines in this thought-provoking story how e-KYC continues to fail people with disabilities and how it keeps financial access just out of reach.

In the investment space, another trend is brewing. Mid-cap mutual funds have been a hot favourite among investors and advisors alike. These funds invest in medium-sized companies ranked 101 to 250 by market value. In that sense, they sit in a “sweet spot” as they offer the potential for faster growth than large-caps while being less risky than small-caps.

For fund managers seeking to generate alpha—the excess return over a benchmark—this segment once offered abundant opportunities, but it seems to be drying up now. Over the past six years, only about 34% of actively managed mid-cap funds have outperformed the Nifty Midcap 150 Total Return Index.

Much of it can be attributed to the fact that information asymmetry has narrowed, leaving fewer undiscovered opportunities that the market hasn’t already priced in. But this also begs the question: Should investors switch to low-cost passive mid-cap index funds instead?

Jash Kriplani explains why, given the limited track record of passive mid-cap funds, moderation and not a complete switch is the wiser approach for now.

Staying on the topic of investments, Employee Stock Option Plans (ESOPs) are another often misunderstood benefit, viewed by employees as a get-rich-quick opportunity. In reality, ESOPs are simply a way for companies—especially start-ups—to give employees the option to own shares of the company in the future and grow their wealth if the company succeeds. While there are a few eye-popping success stories, the experience for most employees could be far more modest and sometimes disappointing.

Shipra Singh spoke to people who didn’t quite realize their ESOP payouts but walked away with hard-earned lessons. Their advice? Treat ESOPs as a bonus. Many may never see value because of tricky vesting, short exercise windows, heavy taxes, and illiquid shares.

Having equity in a company is valuable, and conviction matters especially when you are building something from the ground up, but so does pragmatism. When joining a company that wants you to be a shareholder, ensure your take-home pay isn’t disproportionately reduced, and your stock options don’t exceed 15% of your CTC (or up to 40% for leadership roles).

And if you’re in need of sound financial advice but worried about affordability, read this story by Maulik M on fixed-fee registered investment advisors (RIAs). Regulated by Sebi and required to earn solely through client fees and not product commissions, RIAs can offer conflict-free and reliable financial advice.

But given we still don’t have the mindset to pay for advice, costs can be a deterrent, especially when fees are linked to assets under management or when fixed fees run high. This is often because many RIAs don’t restrict themselves to advice alone: They also help implement the financial plan and offer estate planning and other related services.

But if cost is a deciding factor, there are also fixed-fee RIAs that charge a smaller, flat amount and limit their role to advice only. The story explains how such models can serve as a practical entry point for individuals seeking financial discipline and greater awareness without a heavy price tag.

And lastly, a story on how your money life evolves as your life circumstances change. You may start as a single, carefree earner, transition into a dual-income household after marriage, and later enter the demanding child-rearing years, sometimes with one partner taking a break from work.

Each phase shapes you as an adult, and each brings its own money lessons: from getting asset allocation right early on, to resisting overspending in the dual-income years, to avoiding lifestyle inflation as responsibilities grow.

Anagh Pal captures the journeys of individuals who have lived through these transitions and what they learned along the way.

And in our weekly videos, watch this episode with Ashish Shankar, managing director and chief executive of Motilal Oswal Private Wealth, who talks about how new-age millionaires are approaching wealth and why their style involves greater risk-taking capabilities and a chase for thrill compared to traditional, more conservative wealthy.

Until next time!

Deepti Bhaskaran is editor, Mint Money, with close to two decades of experience as a personal finance journalist. Her work reflects a strong focus on financial literacy, consumer protection and practical money management.