Companies that insist on Aadhaar will face Rs. 1 crore fine and staff jailed
Banks and telecom companies that insist on Aadhaar as the sole identity and address proof. Often customers are not allowed to get a mobile connection or open an account using their passports or ration cards. The companies that insist on Aadhaar cards only for this kind of verification will be liable to a penalty of up to Rs. 1 crore and jail time for the staffers concerned. The sentence ranges from a minimum duration of 3 years to a maximum duration of 10 years.
Companies that insist on Aadhaar will face Rs. 1 crore fine and staff jailed
The penalties for the violation have been proposed in the amendments cleared the Union Cabinet on Monday. These amendments also seek to give Aadhaar holders the option to use the unique ID for completing KYC formalities. The amendments to the Indian Telegraph Act and PMLA have been done keeping in mind a Supreme Court order on Aadhaar. The order said that the unique Aadhaar ID can be considered compulsory only for only for welfare services involving public funds.
The amendments require entities performing authentication to comply with standards of privacy in keeping with the law to be passed Parliament. An exception can be made only in case of “state interest”. All of this has been prescribed the Centre.
A source said, “Aadhaar is a platform that promotes good governance. The amendments protect security and privacy. They set out rules for consent in case of minor and opt-out option at age 18. There are strict punishments for any attempt to tamper with core biometrics.”
The Aadhaar biometric base is very secure. It cannot be accessed agencies using the electronic authentication process. But attempts to misuse the data will result in a fine of Rs. 50 lakh and a jail term that might extend to ten years.
Companies that insist on Aadhaar will have to pass through several red lines and only then they will receive the mentioned penalty.
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