The observance of the International Day of Persons with Disabilities on 3 December highlighted a critical gap in India's financial inclusion drive. Despite government efforts like the Department of Empowerment of Persons with Disabilities, established on 12 May 2012, the digital KYC (Know Your Customer) process remains a significant barrier for nearly 2% of the population living with a disability.
The Inaccessible Face of Digital Finance
While court rulings have nudged the financial sector towards greater inclusion, the mandatory and often non-portable KYC process is failing. For individuals with disabilities, standard e-KYC procedures are not just inconvenient but impossible. The story of Pragya Prasun, an acid-attack survivor, is telling. Facial burns and vision loss prevented her from blinking during a video KYC call, leading to multiple follow-ups before she could open a bank account.
Similarly, Rahul Kelapure, who is visually impaired, faced an absurd demand to sign on a screen with his finger. These are not isolated incidents but symptoms of a system designed without universal accessibility in mind. Financial institutions are struggling to adapt because creating compliant solutions is expensive. Tech vendors who once charged ₹10-20 lakh for standard KYC solutions now quote nearly ₹1 crore for accessible versions, as no single modality works for all disabilities.
Investment Landscape: Shifting Sands in Mid-Caps & ESOPs
In the investment world, the allure of mid-cap mutual funds is facing a reality check. These funds, which invest in companies ranked 101 to 250 by market capitalization, are traditionally seen as a 'sweet spot' for growth. However, the ability of fund managers to generate 'alpha' or excess returns is diminishing. Over the past six years, only about 34% of actively managed mid-cap funds have outperformed the Nifty Midcap 150 Total Return Index.
This underperformance is largely due to reduced information asymmetry, meaning fewer undiscovered opportunities exist. This trend is pushing investors to consider low-cost passive index funds, though experts advise moderation rather than a complete switch, given the limited track record of passive mid-cap options.
Another area ripe for investor education is Employee Stock Option Plans (ESOPs). Often mistaken for a quick wealth scheme, ESOPs are essentially a tool for companies, especially start-ups, to offer employees a stake in future success. However, most employees experience modest or disappointing outcomes due to tricky vesting schedules, short exercise windows, heavy taxes, and illiquid shares.
The pragmatic advice from those who learned the hard way is to treat ESOPs as a bonus. Experts recommend ensuring that stock options do not exceed 15% of your Cost to Company (CTC), or up to 40% for leadership roles, and that your take-home pay isn't disproportionately reduced.
Seeking Affordable, Unbiased Financial Advice
For those seeking sound financial guidance, the emergence of Sebi-regulated Registered Investment Advisors (RIAs) offers a conflict-free alternative. RIAs earn solely through client fees, not product commissions. While costs can be a deterrent, especially for asset-linked fees, a new breed of fixed-fee RIAs provides a practical entry point. These advisors charge a smaller, flat amount and limit their role to pure advice, helping individuals build financial discipline without a hefty price tag.
Ultimately, personal finance is a journey that evolves with life's phases—from being a single earner to a dual-income household and into the child-rearing years. Each stage brings unique money lessons, from early asset allocation to resisting lifestyle inflation. Learning from the experiences of others, as captured in these stories, is key to navigating India's complex financial landscape with greater awareness and confidence.
