Business / Cabinet approves Aadhaar Ordinance to allow voluntary use as ID proof for bank accounts

The Cabinet Thursday approved the promulgation of an Ordinance to allow voluntary use of Aadhaar as identity proof for opening bank account and procuring mobile phone connection. Ordinance will now give the effect to the changes in Aadhaar Act such as giving a child an option to exit from the biometric ID programme on attaining 18 years of age. It bans storing of core biometric information as well as Aadhaar number.

The Ordinance was necessitated as a bill, passed by the Lok Sabha on January 4 but pending in the Rajya Sabha, would have lapsed with the dissolution of the current Lok Sabha. The Ordinance will now give the effect to the changes in the Aadhaar Act such as giving a child an option to exit from the biometric ID programme on attaining 18 years of age.

Briefing reporters after a meeting of the Cabinet chaired by Prime Minister Narendra Modi, Law and IT Minister Ravi Shankar Prasad said the Cabinet has approved the promulgation of an Ordinance to give effect to the Aadhaar and Other Laws (Amendment) Bill.

The amendment provides for stiff penalties for violation of norms set for the use of Aadhaar and violation of privacy. It bans storing of core biometric information as well as Aadhaar number by service providers in cases of individuals who have voluntarily offered the national ID as a means of authentication.

"Aadhaar can be used as KYC on a voluntary basis under the Telegraph Act and PMLA rules. Any entity using Aadhaar will have to adhere to privacy guidelines," Prasad said.