Salient Features of the Ordinance:
- The ordinance seeks to amend –
- The Aadhaar Act, 2016,
- The Indian Telegraph Act, 1885, and
- The Prevention of Money Laundering Act, 2002.
- It provides for ‘voluntary’ sharing of the 12-digit identification number for obtaining new mobile phone connections and opening bank accounts.
- It allows ‘offline verification’ of an individual’s identity, without authentication, through modes specified by the Unique Identification Authority of India (UIDAI) by regulations.
- An entity is allowed to use Aadhaar to perform authentication only if the UIDAI is satisfied that it is compliant with certain standards of privacy and security.
- At the time of enrolling a child to obtain an Aadhaar number, the enrolling agency shall seek the consent of his parent or guardian.
- Restrictions on security and confidentiality of Aadhaar related information do not apply in case the disclosure is pursuant to an order of High Courts (or above).
- It creates a UIDAI Fund to be used for expenses of the UIDAI, including salaries and allowances of its employees. All fees, grants and charges received by the UIDAI shall be credited to this fund.
- It allows the individual to register complaints in certain cases, including impersonation or disclosure of their identity.
- The changes to The Indian Telegraph Act and The Prevention of Money Laundering Act allow banks and telecom companies to use Aadhaar, if offered voluntarily by a person as a Know Your Customer (KYC) document, although neither of the entities can make it mandatory.
- The penalties for violations of the laws have been increased to a maximum of Rs 1 crore in certain cases.
