The Union Cabinet, chaired by Prime Minister Narendra Modi, on Thursday approved the promulgation of an Ordinance to allow voluntary submission of Aadhaar as identity proof for use by private entities such as banks, telcos and fintech firms.
The Ordinance also gives a child an option to exit from the Aadhaar on attaining 18 years of age.
“The amendments proposed are the same as those contained in the Bill passed by the Lok Sabha on January 4, 2019,” the government said. However, the Bill was not passed in the Rajya Sabha which was adjourned sine die.
The amendment also provides for civil penalties for violations of Aadhaar Act and provisions by entities in the Aadhaar ecosystem. “It permits the entities to perform authentication only when they are compliant with the standards of privacy and security specified by the Authority,” it said.
“Subsequent to this amendment, no individual shall be compelled to provide proof of possession of Aadhaar number of undergo authentication for the purpose of establishing his identity unless it is so provided by a law made by Parliament,” the government said, adding that the amendments will enable UIDAI to restrain the misuse of Aadhaar.
The amendment “provide for 12-digit Aadhaar number and its alternate virtual identity to conceal the actual Aadhaar number.”
The move follows, a Supreme Court judgement dated September 26, 2018 which struck down section 57 of the Aadhaar Act that allowed sharing of aadhaar data witrh private entities.
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