Aadhaar and Other Laws (Amendment) Bill 2018

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The bill aims to provide legal backing for voluntary seeding of biometric Aadhaar ID for mobile SIM card and bank account authentication purposes.

Features of the Bill

The important features of the Aadhaar and Other Laws (Amendment) Bill 2018 are:

  • The bill seeks to amend the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016, the Indian Telegraph Act, 1885 and the Prevention of Money-laundering Act, 2002.
  • The amendment permits children, who would turn 18 years old, to opt out of the system.
  • The amendments make sharing of Aadhaar details voluntary for opening bank accounts, school admissions and procuring mobile SIM cards.
  • The bill provides for stiff penalties for violation of norms set for the use of Aadhaar.
  • The amendment bill ban storing of core biometric information as well as Aadhaar number by service providers in cases of individuals who have voluntarily offered the national ID as a means of authentication.
  • The bill makes it clear that anyone not offering Aadhaar cannot be denied any service, be it a bank account or a SIM card.
  • The bill lays down the procedure for offline verification of an Aadhaar number holder and confers enhanced regulator-like power on Unique Identification Authority of India (UIDAI) to give directions as it may consider necessary to any entity in the Aadhaar ecosystem.

Why the amendments are proposed?

  • While upholding the constitutional validity of Aadhaar, the Supreme Court had held struck down Section 57 of the Aadhaar (Targeted Delivery of Financial and other Subsidies, Benefits and Services) Act, 2016 that permitted private entities like telecom companies or other corporate to avail of the biometric Aadhaar data. 
  • Hence to address the issues like recognising the authentication of those who provided Aadhaar as the identity proof, the amendments are brought in by the government.