Key Highlights of the Aadhaar and Other Laws Amendment Bill
The Aadhaar and Other Laws (Amendment) Bill, 2019, was introduced by Electronics and IT Minister Ravi Shankar Prasad in the Lok Sabha on 24 June 2019. It substitutes an Ordinance proclaimed on 2 March 2019. Later, the Rajya Sabha passed “The Aadhaar and Other Laws (Amendment) Bill” on 8 July 2019.
On 24 July 2019, the Union Cabinet sanctioned the amendments to Aadhaar and Other Laws (Amendment) Bill, 2019. A bill to admit the voluntary use of Aadhaar cards as identity proof of the person opening a bank account and procuring mobile phone connections was passed.
The bill, which has become an Act, attempts to amend the Aadhaar Act, 2016, and further amend the Prevention of Money-Laundering Act, 2002, and the Indian Telegraph Act, 1885. The Aadhaar and Other Laws (Amendment) Act, 2019, builds the base for permitting the usage of Aadhaar by private organizations in spite of a Supreme Court ruling in September 2018 that Aadhaar can be used only for welfare schemes and for delivering state subsidies.
The amended Act lays encumbrance on offline verification of Aadhaar holders where the person will be verified via offline methods and no need for any submission of biometric or demographic information to the UIDAI or Unique Identification Authority of India’s data servers. According to the Aadhaar and Other Laws (Amendment) Act, 2019, offline verification is the procedure of verifying the Aadhaar number holder without authentication, and it can be done through offline modes as specified in the rules and regulations.
Following are the highlights of the Aadhaar and Other Laws Amendment Bill
Voluntary use of Aadhaar
The Aadhaar and Other Laws (Amendment) Act, 2019 evidently state, “Every Aadhaar number holder to establish his identity, may voluntarily use his Aadhaar number in physical or electronic form by way of authentication or offline verification, or in such other forms as may be notified, in such manner as may be specified by regulations.” The Aadhaar Act allowed for the use of an Aadhaar number as an individual’s identity proof, and it is subjected to authentication. However, the Supreme Court, concerning privacy-related issues and fear of exclusion, ruled that the usage of Aadhaar was not mandatory for various services and benefits. The amended Act substitutes this provision to state that a person may voluntarily use his or her Aadhaar number as proof of identity by offline verification or authentication. It clearly states that validating the authenticity of an individual’s identity proof via Aadhaar number for availing any service or benefits may be made mandatory only by a law of Parliament.
Usage of Aadhaar number for state welfare schemes
With approving nods from the Cabinet to the Aadhaar and Other Laws (Amendment) Act, 2019, it states that now, Aadhaar numbers can be used for their respective welfare schemes. The provision will enable the states to adopt the Centre’s model of using the Aadhaar number for direct benefit transfer (DBT). With the Aadhaar and Other Laws (Amendment) Act, 2019, the words “or the Consolidated Fund of the State” have been included after the phrase “the Consolidated Fund of India”, in the title of the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016.
Offline verification of Aadhaar number holders
As per the principal Act, Aadhaar ‘authentication’ may swear a particular person’s identity. This process involves submitting the Aadhaar number and their biometric or demographic information to the data servers of the UIDAI or Unique Identification Authority of India for verification. In addition, the amended Act allows ‘offline verification’ of a person’s identity proof (Aadhaar) without authentication via offline modes as specified by regulations of the Unique Identification Authority of India (UIDAI). In the offline verification process, the agency must get the individual’s permission to use or store the Aadhaar number or biometric information. Also, they should inform the individuals about the alternatives of sharing information and not collect, store, or use the Aadhaar number of an individual.
Introduction of Aadhaar ecosystem
The term “Aadhaar ecosystem” was not actually a part of the Act. Still, it has been included with the latest amendment to lay the way for offline verification. The amended Act states that the Aadhaar ecosystem includes requesting agencies, enrolling agencies, and offline verification-attempting organizations. The Unique Identification Authority of India – UIDAI provides the directions to them, depending on the need, for the completion of its verification process or functions under the Act.
Deletion of Section 57 of the Aadhaar Act
Section 57 of the principal Act, “state or anybody corporate or person,” allows the individual to use the Aadhaar number to demonstrate that their identity has been omitted. This happened after the ruling of the Supreme Court in September, which states, “Aadhaar can only be used for welfare schemes and for delivering state subsidies. It excludes the private companies or entities from using Aadhaar data for the verification process of their customers”. Nevertheless, with amendments to the Indian Telegraph Act, 1885, and the Prevention of Money-Laundering Act, 2002, companies related to telecommunication and banks have been allowed to use Aadhaar for the verification process of its customers after getting permission for the option.
UIDAI – Unique Identification Authority of India Fund
As per the principal Act, all revenue and fees collected by the UIDAI were to be credited to the Consolidated Fund of India. The amended Act removes this provision and creates the Unique Identification Authority of India fund, to which all fees, revenues, grants, and charges received shall be credited. This fund shall be utilized for UIDAI expenses, such as allowances and salaries of its employees.
Cancellation of Aadhaar
The amended Act allows the Aadhaar holders an option to apply for the cancellation of their Aadhaar number within six months of reaching 18 years of age. Before, a young adult had no choice or provision to apply for the cancellation of their Aadhaar number. However, the same applies to remaining adults; they also had no provisions to apply for cancellation of their Aadhaar card out of the system and get all the data so far compiled and deleted by banks and other authorities.
Penalties
As per the amended act, the penalty for usage of identity information of a person without official authorization by bespeaking organization or offline verification process attempting entity shall be punishable with imprisonment to the extent to 3 years or may extend up to ten thousand rupees of penalty. The penalty in the case of a company may extend to one lakh rupees and be punishable with imprisonment.
Earlier, according to the principal Aadhaar Act, courts were required to take cognizance of any offence penalized under it only if the complaint was made by UIDAI or any officials or person authorized by UIDAI. After the amendment, the court will have to take cognizance of the offence even if a complaint is made by any individual holding an Aadhaar number.
According to the amended Act, entities that violate the provisions under the Aadhaar Act will be penalized civilly, up to ₹1 crore, with an additional penalty of up to ₹10 lakh each day in case of ceaseless non-compliance.
As per the amended Act, the UIDAI may hold the rights to file a complaint against an organization or an entity in the Aadhaar ecosystem for not attempting to (i) comply with the Act or the UIDAI’s directions and (ii) furnish information required by the UIDAI. Deciding Officers who the UIDAI appointed shall adjudicate such matters and may enforce penalties on the concerned entities. The penalty amount extends up to one crore rupees. The Telecom Disputes Settlement and Appellate Tribunal shall be the authority concerned with the decisions of the Adjudicating Officer.
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