‘Aadhar – 2016’ And ‘Aadhar With Limits – 2018’ – What, Why And Its Impact

This Blog Basically focusses on What is Aadhar Card. Tells you about the Purpose of Aadhar Card, is Aadhar Card mandatory and also tells you about the Aadhar verdict 2018 by the SC.

History of Aadhaar-

  • 2009- setup as an attached office under Planning commission.
  • 2015- transfer of UIDAI under Ministry of Communication and IT
  • 2016- Aadhaar Act passed


What is ‘Aadhaar – 2016’

  • Aadhaar is a 12-digit unique identification number (UID) issued by the Unique Identification Authority of India (UIDAI) to every individual resident of India under section 3 of ‘The Aadhar Act , 2016’ though Aadhaar numbers were being issued from 2010 onwards.
  • Aadhar was declared compulsory for services including bank account, PAN cards, cell phone services, passport and even driving licenses.


Who gets an Aadhaar-

  • Every resident who has stayed for more than 182 days in India in the year prior to submitting Aadhaar application is entitled to obtain an Aadhaar number.
  • To get enrolled he has to submit his demographic information which includes information relating to the name, date of birth, address and other relevant information of an individual, Along with biometric information which includes photograph, finger print, Iris scan, or such other biological attributes of an individual.
  • It excludes race, religion, caste, tribe, ethnicity, language, records of entitlement, income or medical History.


Purpose of Issuing Aadhaar-

  • For issuing Unique Identification numbers (UID), named as “Aadhaar”, to all residents of India
  • To eliminate duplicate and fake identities by issuing a single identity number
  • Aadhar helps to create an easy verification and authentication system
  • To ensure good governance and create an efficient, transparent, and targeted system of delivery of subsidies


What is ‘Aadhar with limits – 2018’:

  • Now, Aadhar has become voluntary in nature, with an option to exit.
  • On September 26, 2018, the Supreme court struck down section 57 of the Aadhar Act, thereby disallowing private companies from accessing and saving Aadhar Data compulsorily.


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Need of the Aadhar verdict:

  • Aadhar began as a system to provide access to welfare schemes efficiently, but soon evolved into a mandatory ID for access to services like bank accounts, PAN cards, cell phone services, passport and even driving licenses.
  • Last year, in a case linked to the biometric database, the government went to the Supreme Court to argue that Indians did not have a fundamental right to privacy.
  • Justice DY Chandrachud’s dissenting judgement held that Aadhaar is not constitutional.
  • The supreme court (4out of 5 judges) gave ‘Aadhar case’ a clean chit, observing that it neither tends to create a surveillance state nor infringe upon the citizens Right to Privacy.


Where is Aadhar mandatory:

  • Aadhar is mandatory only for filling income tax returns and for the allotment of PAN.
  • It becomes compulsory for those who seeks to receive any subsidy, benefit or service under the welfare scheme of the government expenditure whereof is to be met from the Consolidated Fund of India.


Where is Aadhar not mandatory:

  • It won’t be essential for opening bank accounts or getting SIM cards from telecom operators.
  • School admissions cannot be on the basis of Aadhaar.
  • CBSE, NEET, UGC cannot make Aadhaar mandatory.

  • Authentication records cannot be stored for more than six months.
  • Provision to keep data for five years under the Aadhaar Act is bad in law.
  • The consent of parents/guardians will be essential for the enrolment of children under the Aadhaar Act, and “on attaining the age of majority, such children shall be given the option to exit from the Aadhaar project if they so choose in case they do not intend to avail the benefits of the scheme”.


Impacts of ‘Aadhar with limits 2018:

  • This decision may have a negative impact on companies who rely heavily on Aadhar based e-KYC (know your customer) verification and e-sign for digital signature of documents.
  • For customer’s verifications, the companies were paying RS. 15 per person by leveraging e-KYC forms but from now they will have to pay RS. 100 for the physical KYC.
  • Striking down of Regulation 27 (1) and reducing the storage period of authentication data from five years to six months will ensure personal data is not misused.


You can also read about GST (Goods and Services Tax)



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