Insights Into Yojana January 2019 1

Aadhaar and Other Laws (Amendment) Bill, 2018
insightsonindia.com/2019/01/03/aadhaar-and-other-laws-amendment-bill-2018
insights ias January 3, 2019
Topics covered:
1. Government policies and interventions for development in various sectors and issues
arising out of their design and implementation.
2. Important aspects of governance, transparency and accountability, e-governance-
applications, models, successes, limitations, and potential; citizens charters,
transparency & accountability and institutional and other measures.
Aadhaar and Other Laws (Amendment) Bill, 2018
What to study?
For Prelims: Key features of the bill, what is Aadhar and UIDAI?
For Mains: Aadhar and issues of privacy, views of Supreme Court and the need for a
fine balance.
Context: The Aadhaar and Other Laws (Amendment) Bill, 2018 has been introduced in the
Lok Sabha. The Aadhaar Act provides targeted delivery of subsidies and benefits to
individuals residing in India by assigning them unique identity numbers, called Aadhaar
numbers.
The Bill amends 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.
Key features of the Bill:
Offline verification of Aadhaar number holder: The Bill allows ‘offline verification’ of an
individual’s identity, without authentication, through modes specified by the Unique
Identification Authority of India (UIDAI) by regulations.
During offline verification, the agency must (i) obtain the consent of the individual, (ii)
inform them of alternatives to sharing information, and (iii) not collect, use or store
Aadhaar number or biometric information.
Voluntary use of Aadhaar to verify identity: The Bill states that an individual may voluntarily
use his Aadhaar number to establish his identity, by authentication or offline verification.
Authentication of an individual’s identity via Aadhaar, for the provision of any service, may
be made mandatory only by a law of Parliament.
Entities using Aadhaar: An entity may be allowed to perform authentication through

Aadhaar, if the UIDAI is satisfied that it is (i) compliant with certain standards of privacy
and security, or (ii) permitted by law, or (iii) seeking authentication for a purpose specified
by the central government in the interest of the State.
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Aadhaar number of children: The Bill specifies that at the time of enrolling a child to obtain
an Aadhaar number, the enrolling agency shall seek the consent of his parent or guardian.
The agency must inform the parent or guardian of (i) the manner in which the information
will be used, (ii) the recipients with whom it will be shared, and (iii) their right to access the
information. After attaining eighteen years of age, the child may apply for cancellation of
his Aadhaar.
Disclosure of information in certain cases: Under the Act, restrictions on security and
confidentiality of Aadhaar related information do not apply in case the disclosure is
pursuant to an order of a District Court (or above). The Bill amends this to allow such
disclosure only for orders by High Courts (or above). The Bill also allows disclosure of
information on directions of officers not below the rank of a Secretary.
UIDAI Fund: Under the Act, all fees and revenue collected by the UIDAI shall be credited to
the Consolidated Fund of India. The Bill removes this provision, and creates the Unique
Identification Authority of India Fund. All fees, grants and charges received by the UIDAI
shall be credited to this fund. The fund shall be used for expenses of the UIDAI, including
salaries and allowances of its employees.
Complaints: The Bill allows the individual to register complaints in certain cases, including
impersonation or disclosure of their identity. The Bill defines the Aadhaar ecosystem to
include enrolling agencies, requesting agencies, and offline verification-seeking entities. It
allows the UIDAI to issue directions to them if necessary for the discharge of its functions
under the Act.
Penalties: Under the Bill, the UIDAI may initiate a complaint against an entity in the Aadhaar
ecosystem for failure to (i) comply with the Act or the UIDAI’s directions, and (ii) furnish
information required by the UIDAI. Adjudicating Officers appointed by the UIDAI shall
decide such matters, and may impose penalties up to one crore rupees on such entities.
The Telecom Disputes Settlement and Appellate Tribunal shall be the appellate authority
against decisions of the Adjudicating Officer.
Why the amendments are proposed?
While upholding the constitutional validity of Aadhaar, the Supreme Court had struck down
Section 57 of the Aadhaar Act, 2016 that permitted private entities like telecom companies
or other corporate to avail of the biometric Aadhaar data. Hence to address the issues like
recognising the authentification of those who provided Aadhaar as the identity proof, the
amendments are brought in by the government.
Sources: the hindu.
Mains Question: Do you think linking of Aadhaar with most of the schemes would inevitably
end up infringing rights of citizens? Critically comment.
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Aadhaar and Other Laws (Amendment) Bill, 2018

insights ias January 3, 2019

Aadhaar and Other Laws (Amendment) Bill, 2018

Key features of the Bill:

Entities using Aadhaar: An entity may be allowed to perform authentication through

Why the amendments are proposed?

Sources: the hindu.

Copyright (C) INSIGHTS ACTIVE LEARNING

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