The Cabinet on Monday, 17 December, approved amending the two existing laws to provide legal backing for the seeding of biometric ID Aadhaar with mobile numbers and bank accounts, news agency PTI reported quoting sources.
The decision is an implementation of what the Supreme Court had mandated in September this year, by striking down Section 57 of the Aadhaar Act, thus, restricting use of Aadhaar by private companies.
Section 57 of the Aadhaar Act made seeding of the biometric ID with SIM cards and bank accounts mandatory.
The decision means that the Cabinet is only approving the amendments to the Telegraph Act and the Prevention of Money Laundering Act (PMLA).
The two Acts will be amended to provide for voluntary sharing of the 12-digit identification number for obtaining new mobile phone connections and for the opening of bank accounts, PTI reported.
The amendment in the Telegraph Act will now provide legal backing for the issuance of mobile SIMs through Aadhaar.
Similarly, the amendment to the PMLA will give individuals options to link their bank accounts to Aadhaar in the KYC option.
The apex court in a landmark judgment had held constitutional validity of Aadhaar for the distribution of state-sponsored welfare subsidies but ruled that it cannot be made mandatory for opening bank accounts or providing mobile-phone connections. The ruling followed petitions by activists and lawyers citing privacy concerns.
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