Aadhaar-issuing authority UIDAI is proposed to assume a regulatory role with enhanced power to take enforcement actions on misuse of the national biometric ID and impose stiff penalties for violations such as failure to obtain consent for authentication and in case of data breaches, a top source said, PTI reported.
In the backdrop of the landmark Supreme Court verdict that imposed restrictions on use of Aadhaar by private companies, the Cabinet Monday evening approved amending the Aadhaar Act to enhance powers of Unique Identification Authority of India (UIDAI), and ensure stringent safeguards against any violation of norms.
The amendments proposed are in compliance of the recent order of the apex court, the source pointed out. Also, the Telegraph Act and Prevention of Money Laundering Act (PMLA) rules will be amended to provide for voluntary use of Aadhaar for obtaining SIMs and opening bank accounts.
The amendments will go to Parliament for approval. The proposed amendments in Aadhaar Act are also in sync with the Srikrishna panel recommendations that had asserted that UIDAI should not only be autonomous in its decision-making, but also be vested with powers akin to traditional regulators for enforcement actions.
The suggested amendments, which will be placed before Parliament, will give UIDAI more powers to crackdown on violation, the source said adding that the Section 57 of Aadhaar Act – that previously allowed sharing of data with private entities and was subsequently struck down by the apex court – is proposed to be removed altogether as part of the proposed changes.