Why in news?
The Lok Sabha recently passed The Aadhaar and Other Laws (Amendment) Bill, 2018.
What is the need?
- Verdict - The changes follow the recent Supreme Court’s verdict in regards with Aadhaar.
- It upheld Aadhaar but limited its use for only certain subsidies and schemes funded by the Consolidated Fund of India.
- The court disallowed private companies from asking for Aadhaar for authentication.
- The amendments now seek to work on some of the restrictions imposed by the court.
- Regulation - Over 122 crore Aadhaar numbers were issued over the period.
- So, given the widespread use of Aadhaar, it is essential to have a regulatory framework for its operation.
- Also, UIDAI needed to be empowered to take enforcement actions against errant entities.
What is the Bill's objective?
- The objective is to amend the laws relating to the use of Aadhaar and the powers of the Unique Identification Authority of India.
- The Bill seeks to amend at least 27 sections of three existing laws. These are:
- The Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016
- The Indian Telegraph Act, 1885
- The Prevention of Money Laundering Act, 2002
- The most important changes are to
- allow children the chance to exit the Aadhaar ecosystem once they turn 18 years old
- expand the scope of Aadhaar being used by entities that was restricted by the Supreme Court
- create a UIDAI fund
- provide legal backing for Aadhaar to be used voluntarily as proof of identity to open bank accounts and for mobile phone SIM cards
What are the major provisions?
- Aadhaar for authentication - The Aadhaar Act allowed for the state and any body corporate, Aadhaar-based authentications.
- But the SC had said that Aadhaar can only be sought for welfare schemes and subsidies mentioned in Section 7 of the Aadhaar Act.
- The amendments now say the central government can allow Aadhaar-based authentications, in consultation with the UIDAI.
- But this is only -
- if the entity is compliant with certain standards of privacy and security specified by the UIDAI
- if it is permitted by law
- for any purpose that the central government feels is in the interest of the state
- The changes to The Indian Telegraph Act and The Prevention of Money Laundering Act allow banks and telecom companies to use Aadhaar.
- But this is only in case if it is offered voluntarily by a person as a Know Your Customer (KYC) document or the only KYC document.
- But neither of the entities can make it mandatory.
- A person will have the choice to use any other valid document for KYC.
- The central government can, through a notification, allow a non-banking company too, if necessary, to perform such authentications.
- Aadhaar for children - The amendments say that at the time of enrolment the parents or guardians of the children would have to provide consent.
- The agency must apprise them of how the information will be used, whom it will be shared with, and other rights.
- They also allow for the children to apply for cancellation of their Aadhaar number within 6 months of achieving adulthood.
- Complaints and penalties - The original Act permitted only the UIDAI or officers authorised by it to make complaints in case of violations.
- With the amendments, individuals will be able to register complaints in certain cases.
- This can include impersonation, or if their Aadhaar information is disclosed without their consent.
- The amendments also give UIDAI the power to issue directions to entities in the Aadhaar ecosystem.
- The penalties to be decided by an adjudicating officer appointed by UIDAI for violations have been increased to a maximum of Rs 1 crore in certain cases.
- In case of a continuing failure, additional penalty may extend to ten lakh rupees for every day.
- The Telecom Disputes Settlement and Appellate Tribunal has been made the Appellate Tribunal for such cases.
- Offline verification, voluntary use - The Aadhaar Act only allowed Aadhaar to be used “subject to authentication”.
- It works when a person’s biometric information results in a positive match with the Central Identities Data Recovery information.
- This has now been changed to use it by authentication or even offline verification.
- The verification can be done “offline”, using a digitally signed copy of the Aadhaar card.
- This contains the person’s photograph, selected information and a QR code, but not the biometric information, and need not include the Aadhaar number.
- Also, people can use Aadhaar as an ID proof voluntarily, without having to authenticate.
- UIDAI Fund - Currently, the UIDAI deposits whatever revenue it collects in the Consolidated Fund of India.
- The amendments create a UIDAI Fund, which will now receive its revenues from fees, grants and charges.
- The revenue will be used for UIDAI’s expenses.
- Other amendments - In compliance with the SC's order, only High Courts (not district courts) can ask for disclosure of Aadhaar-related information.
- Only an officer of the rank of Secretary (not Joint Secretary, as earlier provisioned) can issue directions for such information in the “interest of national security”.
- The changes have made provisions for the use of virtual IDs to conceal the actual Aadhaar number of an individual.
- Section 57 of the Aadhaar Act relating to use of Aadhaar by private entities has been omitted, as it was struck down by the SC.
Source: Indian Express
