The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday approved a Bill to allow voluntary submission of Aadhaar as identity proof for use by private entities such as banks and telecom companies.
‘The Aadhaar and Other Laws (Amendment) Bill, 2019’, which will replace an ordinance, also gives a child an option to exit from Aadhaar on attaining 18 years of age. “The amendments proposed are the same as those contained in the Ordinance promulgated by the President on 2nd March, 2019,” the government said in a release.
The government will introduce the Bill in the first session of Parliament that begins June 17.
The Bill proposes deletion of section 57 of the Aadhaar Act that allows use of Aadhaar by private entities, while also providing for civil penalties for violation of Aadhaar.
“The decision would enable UIDAI to have a more robust mechanism to serve the public interest and restrain the misuse of Aadhar,” the government said, adding that subsequent to this amendment, no individual would be compelled to provide proof of possession of Aadhaar number “or undergo authentication for the purpose of establishing his identity unless it is so provided by a law made by Parliament.”
“For the convenience of general public in opening of bank accounts, the proposed amendments would allow the use of Aadhaar number for authentication on voluntary basis as acceptable KYC document under the Telegraph Act, 1885, and the Prevention of Money Laundering Act, 2002,” it said.