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Sam Ghosh Founder and SEBI Regd. Investment Adviser at Wisejay Private Limited Bangalore, Karnataka
What does the currently passed ‘The Aadhaar and Other Laws (Amendment) Bill, 2018’ mean for us?
In In the News
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10:14:52 AM, 5th January, 2019
  • Sam GhoshFounder and SEBI Regd. Investment Adviser at Wisejay Private LimitedBangalore, Karnataka
    Profile

    ‘The Aadhaar and Other Laws (Amendment) Bill, 2018’ was introduced in the Lok Sabha on the 2nd January 2019 and was passed on the 4th. The bill amends various sections of 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. In this post, we will discuss the implications of the changes.



    IDENTITY VERIFICATION

    What does the Aadhat Act say?

    Aadhar holder’s identity can be verified using Aadhar ‘authentication’ which involves Aadhaar number, and their biometric and demographic information to the Central Identities Data Repository for verification.


    Amendment:

    This bill allows ‘offline verification’ without ‘authentication’.

    This bill also makes use of Aadhar for identity verification voluntary in both ‘authentication’ or ‘offline verification’ mode. This bill also amends Telegraph Act, 1885 and the Prevention of Money Laundering Act, 2002 to allow identity verification by telecom companies, banks and financial institutions using Aadhar (both ‘authentication’ or “offline verification’ mode) or passport or any other document notified by the central government.

    The choice lies with the consumer and companies cannot deny any service for not having or providing Aadhar number.



    ENTITIES USING AADHAAR

    What does the Aadhat Act say?

    Aadhar number can be used by the State or a body corporate under any law to establish the identity of an individual.


    Amendment:

    The amendment removes that provision. An entity may be allowed to use Aadhar based authentication if it satisfies UAID with that the entity is

    1. compliant with certain standards of privacy and security, or

    2. the authentication is permitted by law, or
    3. seeking authentication for a purpose specified by the central government in the interest of the State.

    This is an important point. Now, private companies cannot ask for Aadhar information and cannot refuse services without Aadhar.



    AADHAR FOR CHILDREN

    The amendment bill introduces consent of parent or guardian for the Aadhat enrollment of a minor. The enrollment agency must inform the parent or guardian on

    1. the use of the information

    2. the recipients of the information, and

    3. right to access the information.


    When the children become major, they have the right to cancel the Aadhar.



    DISCLOSURE OF INFORMATION BY THE ORDER OF COURT

    What does the Aadhat Act say?

    The security and confidentiality rules of Aadhar related information does not apply in the relation of order from a district (or above) court.

    Also, an officer of rank Joint Secretary or above can order disclosure of Aadhar related information in the interest of national security.


    Amendment:

    This exception of the security and confidentiality rules in only applicable in case of high court orders.

    Only an officer ranking Secretary or above can order disclosure of Aadhar related information in the interest of national security.



    UIDAI FUND

    What does the Aadhat Act say?

    All the fees and revenues collected by UIDAI will go to the Consolidated Fund of India.


    Amendment:
    Unique Identification Authority of India Fund is created and all the fees, grants and charges received by UIDAI will be credited to this fund. This fund will be used for expenses of UIDAI including staff salaries.



    COMPLAINTS

    What does the Aadhat Act say?

    An Aadhar related offence can be brought to a court only if UIDAI registers a complaint.


    Amendment:

    Individuals can bring such offence to the notice of courts in some cases such as impersonation or disclosure of their identity.



    PENALTIES

    According to the bill, UIDAI is allowed to initiate a complaint against an entity in the Aadhaar ecosystem which fails to

    1. comply with the Act or the UIDAI’s directions, and
    2. furnish information required by the UIDAI.



    Related Links

    https://prsindia.org/billtrack/aadhaar-and-other-laws-amendment-bill-2018

    https://uidai.gov.in/images/the_aadhaar_act_2016.pdf

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