Cabinet nod for Aadhaar as ID proof at banks, telcos

  1. The Union Cabinet has approved “The Aadhaar and Other Laws (Amendment) Bill, 2019” to replace the Aadhaar and Other Laws (Amendment) Ordinance, 2019.
  2. The Bill seeks to give effect to the changes in the Aadhaar Act such as giving a child an option to exit from the Aadhar programme on turning 18.
  3. The bill says that for the convenience of the general public in the opening of bank accounts,it will allow the use of Aadhaar number for authentication on a voluntary basis as an acceptable KYC document under the Telegraph Act, 1885 and the Prevention of Money Laundering Act,2002.
  4. Further,the bill provides for stiff penalties upon violation of norms pertaining to Aadhaar and violation of privacy.It proposes civil penalty of up to ₹1 crore on entities that violate the provisions of the Aadhaar Act, with an additional fine of up to ₹10 lakh per day in case of continuous non compliance.
  5. The bill also proposes deletion of section 57 of the Aadhaar Act relating to the use of the biometric identifier by private entities.The amendment will also prevent denial of services for refusing to or being unable to undergo authentication.
  6. Besides this,the proposed amendments provide for establishment of Unique Identification Authority of India Fund.It also confers enhanced regulator-like power on the UIDAI to give directions as it may consider necessary to any entity in the Aadhaar ecosystem.
  7. The bill is in pursuance to the Supreme Court judgement in 2018.The Supreme Court had upheld that the Aadhaar is constitutionally valid but struck down section 57 of the Aadhaar Act.
  8. The SC had ruled that Aadhaar is mandatory for filing of income tax returns (ITR) and allotment of Permanent Account Number (PAN). However, Aadhaar cannot be made mandatory for opening of a bank account and for getting mobile connections.
  9. The Aadhaar number is a verifiable twelve-digit unique identity number issued by the Unique Identification Authority of India (UIDAI) to the residents of India.It is linked with the resident’s demographic and biometric information.The Aadhaar project was conceptualised in the year 2006 and launched in the year 2009 with the creation of Unique Identification Authority of India (UIDAI).
  10. The Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016 provides legislative backing to the project.

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