New Delhi: The Cabinet Wednesday cleared a Bill to allow voluntary use of Aadhaar as identity proof for opening bank accounts and procuring mobile phone connections.
The Bill – which will be in form of amendment to Aadhaar Act 2016 and will replace an ordinance issued in March, 2019 – also proposes stiff penalties for violation of norms. The Aadhaar and Other Laws (Amendment) Bill, 2019 will be introduced in the ensuing session of Parliament, beginning June 17.
“For the convenience of general public in opening of bank accounts, the proposed amendments would allow the use of Aadhaar number for authentication on voluntary basis as acceptable KYC (Know Your Customer) document under the Telegraph Act, 1885 and the Prevention of Money Laundering Act, 2002,” an official release said.
Put simply, this means it will allow voluntary use of Aadhaar number for authentication and identity proof in opening of bank accounts and procuring of mobile phone connections.
The Bill seeks to give a child an option to exit from the biometric ID programme on attaining 18 years of age, while stipulating stiff penalties for violation of norms set for the use of Aadhaar and violation of privacy.