Home India Ministry of Law and Justice The Aadhaar and Other Laws (Amendment) Act, 2019....
Date: 2019-07-24 Category: Extra Ordinary State: Union Government Country: India

The Aadhaar and Other Laws (Amendment) Act, 2019.

Issued by Ministry of Law and Justice · Legislative Department

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Executive Summary & Key Takeaways

**Executive Summary:** The Aadhaar and Other Laws Amendment Act, 2019, received Presidential assent on July 23, 2019, and amends the Aadhaar Targeted Delivery of Financial and Other Subsidies, Benefits and Services Act, 2016, the Indian Telegraph Act, 1885, and the Prevention of Money-laundering Act, 2002. It aims to modify regulations surrounding Aadhaar usage, consent, and penalties, while also introducing provisions for offline verification and virtual identities. The Act comes into force on a date appointed by the Central Government via notification in the Official Gazette, with different dates possible for different provisions. **Key Points / Main Content:** * **Amendments to the Aadhaar Targeted Delivery of Financial and Other Subsidies, Benefits and Services Act, 2016:** * Long title amended to include reference to the Consolidated Fund of the State. * Definition of "Aadhaar number" includes alternative virtual identity. * Definitions for "Aadhaar ecosystem", "Adjudicating Officer", "Appellate Tribunal", "child", "offline verification", and "offline verification-seeking entity" are inserted. * Enrolling agencies must seek consent from a parent or guardian when enrolling a child. * A child can apply for cancellation of their Aadhaar number within six months of turning eighteen. * A child shall not be denied any subsidy, benefit, or service under section 7 for failure to establish their identity by undergoing authentication, furnishing proof of possession of Aadhaar number, or producing an application for enrolment in the case of a child to whom no Aadhaar number has been assigned. * Aadhaar number holders can voluntarily use their Aadhaar number or alternative virtual identity for establishing identity. * Entities may be allowed to perform authentication if they comply with privacy and security standards. * Mandatory authentication is permissible if required by a law made by Parliament. * Requesting entities must inform Aadhaar holders of alternate identification means. * Requesting entities must, in case of failure to authenticate, provide alternate means of identification. * New section 8A inserted regarding offline verification of Aadhaar numbers, including consent requirements and restrictions on data usage. * The Authority may issue directions to any entity in the Aadhaar ecosystem. * Section 57 of the principal Act is omitted. * Civil penalties are introduced for non-compliance, potentially reaching one crore rupees, with additional daily penalties for continued failure. * The Act defines procedures for adjudicating penalties, including the appointment of an Adjudicating Officer and the right to appeal to the Appellate Tribunal. * Penalties for unauthorized use by requesting or offline verification-seeking entities are specified, with imprisonment or fines. * The Act specifies procedures for adjudicating penalties, including the appointment of an Adjudicating Officer. * The Act provides that the Unique Identification Authority of India shall not be liable to pay income tax or any other tax in respect of its income. * **Amendment to the Indian Telegraph Act, 1885:** * Licensees providing telegraph services must identify persons through Aadhaar authentication/offline verification, passport use, or other valid documents. * Licensees using Aadhaar authentication must also offer alternative identification methods. * Use of any identification method is voluntary, and services cannot be denied for lack of an Aadhaar number. * Core biometric information and Aadhaar numbers shall not be stored. * **Amendments to the Prevention of Money-laundering Act, 2002:** * Reporting entities must verify client identity via Aadhaar authentication (for banking companies), offline verification, passport, or other valid documents. * The use of any identification method is voluntary, and services cannot be denied for lack of an Aadhaar number. * Core biometric information and Aadhaar numbers shall not be stored. * Omission of clauses c and d in section 12 and clauses j and jj in section 73. **Impact Analysis:** * **Aadhaar Number Holders/Individuals:** * *Impact:* Enhanced control over Aadhaar usage, including the option for virtual identities and offline verification. Greater awareness of consent requirements and alternative identification methods. * *Action Required:* Understand rights and options related to Aadhaar usage, including consent mechanisms, virtual identities, and offline verification. * **Enrolling Agencies:** * *Impact:* New obligations for obtaining consent from parents/guardians for child enrolments and informing them of relevant details. * *Action Required:* Modify enrolment processes to comply with consent requirements for children. * **Requesting Entities/Offline Verification-Seeking Entities:** * *Impact:* Need to comply with privacy and security standards for authentication and offline verification. Must offer alternative identification methods and avoid storing core biometric information or Aadhaar numbers. * *Action Required:* Update systems and procedures to meet privacy and security standards, implement alternative identification methods, and ensure compliance with data storage restrictions. * **Reporting Entities (Under Prevention of Money-laundering Act):** * *Impact:* Must verify client identity through specified methods (including Aadhaar authentication for banking companies, or other methods). * *Action Required:* Implement compliant verification processes, offering alternative identification methods, and ensuring data storage restrictions are met. * **Unique Identification Authority of India (UIDAI):** * *Impact:* Expanded role in regulating the Aadhaar ecosystem, including specifying standards, issuing directions, and appointing adjudicating officers. * *Action Required:* Develop and implement regulations, standards, and procedures as required by the amended Act. * **Central Government:** * *Impact:* Authority to prescribe purposes for authentication, specify safeguards and conditions, and notify additional safeguards for reporting entities. * *Action Required:* Exercise powers to prescribe authentication purposes, specify safeguards, and issue notifications as needed.

Key Entities Referenced

Parliament: The legislative body that enacted the Aadhaar and Other Laws Amendment Act, 2019. Aadhaar and Other Laws Amendment Act, 2019: An Act of Parliament that amends the Aadhaar Targeted Delivery of Financial and Other Subsidies, Benefits and Services Act, 2016, the Indian Telegraph Act, 1885, and the Prevention of Moneylaundering Act, 2002. Aadhaar Targeted Delivery of Financial and Other Subsidies, Benefits and Services Act, 2016: An Act that is amended by the Aadhaar and Other Laws Amendment Act, 2019. It concerns the targeted delivery of financial and other subsidies, benefits, and services using Aadhaar. Indian Telegraph Act, 1885: An Act that is amended by the Aadhaar and Other Laws Amendment Act, 2019, particularly regarding the identification of individuals using telegraph services. Prevention of Moneylaundering Act, 2002: An Act that is amended by the Aadhaar and Other Laws Amendment Act, 2019, specifically concerning the verification of client identity by reporting entities. Central Government: The government body responsible for appointing the date of commencement of the Aadhaar and Other Laws Amendment Act, 2019 and prescribing purposes for authentication. Unique Identification Authority of India: The Authority responsible for issuing Aadhaar numbers and regulating the Aadhaar ecosystem. It also has the power to issue directions to any entity in the Aadhaar ecosystem. Telecom Disputes Settlement and Appellate Tribunal: The Appellate Tribunal established under the Telecom Regulatory Authority of India Act, 1997, which will hear appeals against the decision of the Adjudicating Officer under this Act.
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jftLVªh lañ Mhñ ,yñ—(,u)04@0007@2003—19 REGISTERED NO. DL—(N)04/0007/2003—19 vlk/kkj.k EXTRAORDINARY Hkkx II — [k.M 1 PART II—Section 1 izkf/kdkj ls izdkf'kr PUBLISHED BY AUTHORITY lañ 33] ubZ fnYyh] cq/kokj] tqykbZ 24] 2019@Jko.k 2] 1941 ¼'kd½ No. 33] NEW DELHI, WEDNESDAY, JULY 24, 2019/SHRAVANA 2, 1941 (SAKA) bl Hkkx esa fHkUu i`"B la[;k nh tkrh gS ftlls fd ;g vyx ladyu ds :i esa j[kk tk ldsA Separate paging is given to this Part in order that it may be filed as a separate compilation. MINISTRY OF LAW AND JUSTICE (Legislative Department) New Delhi, the 24th July, 2019/Shravana 2, 1941 (Saka) The following Act of Parliament received the assent of the President on the 23rd July, 2019, and is hereby published for general information:— THE AADHAAR AND OTHER LAWS (AMENDMENT) ACT, 2019 NO. 14 OF 2019 [23rd July, 2019.] An Act to amend the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016 and further to amend the Indian Telegraph Act, 1885 and the Prevention of Money-laundering Act, 2002. BE it enacted by Parliament in the Seventieth Year of the Republic of India as follows:— PART I PRELIMINARY 1. (1) This Act may be called the Aadhaar and Other Laws (Amendment) Act, 2019. Short title and commencement. (2) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint; and different dates may be appointed for different provisions2 THE GAZETTE OF INDIA EXTRAORDINARY [PART II— of this Act and any reference in any such provision to the commencement of this Act shall be construed as a reference to the commencement of that provision. PART II AMENDMENTS TO THE AADHAAR (TARGETED DELIVERY OF FINANCIAL AND OTHER SUBSIDIES, BENEFITS AND SERVICES) ACT, 2016 Amendment 2. In the long title of the Aadhaar (Targeted Delivery of Financial and Other Subsidies, of Long title Benefits and Services) Act, 2016 (hereafter in this Part referred to as the principal Act), after of Act 18 of the words “the Consolidated Fund of India”, the words “or the Consolidated Fund of the 2016. State” shall be inserted. Amendment 3. In section 2 of the Principal Act,— of section 2. (i) for clause (a), the following clause shall be substituted, namely:— ‘(a) “Aadhaar number” means an identification number issued to an individual under sub-section (3) of section 3, and includes any alternative virtual identity generated under sub-section (4) of that section;’; (ii) after clause (a), the following clause shall be inserted, namely:— ‘(aa) “Aadhaar ecosystem” includes enrolling agencies, Registrars, requesting entities, offline verification-seeking entities and any other entity or group of entities as may be specified by regulations;’; (iii) after clause (b), the following clauses shall be inserted, namely:— ‘(ba) “Adjudicating Officer” means an Adjudicating Officer appointed under sub-section (1) of section 33B; (bb) “Appellate Tribunal” means the Appellate Tribunal referred to in sub-section (1) of section 33C;’; (iv) after clause (i), the following clause shall be inserted, namely:— ‘(ia) “child” means a person who has not completed eighteen years of age;’; (v) after clause (p), the following clauses shall be inserted, namely:— ‘(pa) “offline verification” means the process of verifying the identity of the Aadhaar number holder without authentication, through such offline modes as may be specified by regulations; (pb) “offline verification-seeking entity” means any entity desirous of undertaking offline verification of an Aadhaar number holder;’. Amendment 4. In section 3 of the principal Act, after sub-section (3), the following sub-section of section 3. shall be inserted, namely:— “(4) The Aadhaar number issued to an individual under sub-section (3) shall be a twelve-digit identification number and any alternative virtual identity as an alternative to the actual Aadhaar number of an individual that shall be generated by the Authority in such manner as may be specified by regulations.”. Insertion of 5. After section 3 of the principal Act, the following section shall be inserted, new section namely:— 3A. Aadhaar “3A. (1) The enrolling agency shall, at the time of enrolment of a child, seek the number of consent of the parent or guardian of the child, and inform the parent or guardian, the children. details specified under sub-section (2) of section 3. (2) A child who is an Aadhaar number holder may, within a period of six months of attaining the eighteen years of age, make an application to the Authority for cancellation of his Aadhaar number, in such manner as may be specified by regulations and the Authority shall cancel his Aadhaar number.SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY 3 (3) Notwithstanding anything in section 7, a child shall not be denied any subsidy, benefit or service under that section in case of failure to establish his identity by undergoing authentication, or furnishing proof of possession of Aadhaar number, or in the case of a child to whom no Aadhaar number has been assigned, producing an application for enrolment.”. 6. In section 4 of the principal Act, for sub-section (3), the following sub-sections Amendment shall be substituted, namely:— of section 4. “(3) Every Aadhaar number holder to establish his identity, may voluntarily use his Aadhaar number in physical or electronic form by way of authentication or offline verification, or in such other form as may be notified, in such manner as may be specified by regulations. Explanation.—For the purposes of this section, voluntary use of the Aadhaar number by way of authentication means the use of such Aadhaar number only with the informed consent of the Aadhaar number holder. (4) An entity may be allowed to perform authentication, if the Authority is satisfied that the requesting entity is— (a) compliant with such standards of privacy and security as may be specified by regulations; and (b) (i) permitted to offer authentication services under the provisions of any other law made by Parliament; or (ii) seeking authentication for such purpose, as the Central Government in consultation with the Authority, and in the interest of State, may prescribe. (5) The Authority may, by regulations, decide whether a requesting entity shall be permitted the use of the actual Aadhaar number during authentication or only an alternative virtual identity. (6) Every requesting entity to whom an authentication request is made by an Aadhaar number holder under sub-section (3) shall inform to the Aadhaar number holder of alternate and viable means of identification and shall not deny any service to him for refusing to, or being unable to, undergo authentication. (7) Notwithstanding anything contained in the foregoing provisions, mandatory authentication of an Aadhaar number holder for the provision of any service shall take place if such authentication is required by a law made by Parliament.”. 7. In section 7 of the principal Act, after the words “the Consolidated Fund of India”, Amendment of section 7. the words “or the Consolidated Fund of State” shall be inserted. 8. In section 8 of the principal Act,— Amendment of section 8. (a) in sub-section (2),— (i) in clause (a), after the words “consent of an individual”, the words “, or in the case of a child obtain the consent of his parent or guardian” shall be inserted; (ii) after clause (b), the following proviso shall be inserted, namely:— “Provided that the requesting entity shall, in case of failure to authenticate due to illness, injury or infirmity owing to old age or otherwise or any technical or other reasons, provide such alternate and viable means of identification of the individual, as may be specified by regulations.”; (b) in sub-section (3), after the words “for authentication,”, the words “or in the case of a child, his parent or guardian” shall be inserted.4 THE GAZETTE OF INDIA EXTRAORDINARY [PART II— Insertion of 9. After section 8 of the principal Act, the following section shall be inserted, new section 8A. namely:— Offline “8A. (1) Every offline verification of an Aadhaar number holder shall be performed verification in accordance with the provisions of this section. of Aadhaar number. (2) Every offline verification-seeking entity shall,— (a) before performing offline verification, obtain the consent of an individual, or in the case of a child, his parent or guardian, in such manner as may be specified by regulations; and (b) ensure that the demographic information or any other information collected from the individual for offline verification is only used for the purpose of such verification. (3) An offline verification-seeking entity shall inform the individual undergoing offline verification, or in the case of a child, his parent or guardian, the following details with respect to offline verification, in such manner as may be specified by regulations, namely:— (a) the nature of information that may be shared upon offline verification; (b) the uses to which the information received during offline verification may be put by the offline verification-seeking entity; and (c) alternatives to submission of information requested for, if any. (4) No offline verification-seeking entity shall— (a) subject an Aadhaar number holder to authentication; (b) collect, use, or store an Aadhaar number or biometric information of any individual for any purpose; (c) take any action contrary to any obligation on it as may be specified by regulations.”. Substitution of 10. For section 21 of the principal Act, the following section shall be substituted, new section namely:— for section 21. Officers and “21. (1) The Authority shall appoint such officers and employees as may be other required for the discharge of its functions under this Act. employees of Authority. (2) The salaries and allowances payable to, and the other terms and conditions of service of, the officers and employees of the Authority shall be such as may be specified by regulations.”. Insertion of 11. After section 23 of the principal Act, the following section shall be inserted, new section namely:— 23A. Power of “23A. (1) The Authority may for the discharge of its functions under this Act, or Authority to any rules or regulations made thereunder, by order, issue such directions from time to issue time to any entity in the Aadhaar ecosystem, as it may consider necessary. directions. (2) Every direction issued under sub-section (1) shall be complied with by the entity in the Aadhaar ecosystem to whom such direction is issued.”. Substitution 12. For section 25 of the principal Act, the following section shall be substituted, of new namely:— section for section 25. Fund. “25. (1) There shall be constituted a Fund to be called the Unique Identification Authority of India Fund and there shall be credited thereto— (a) all grants, fees and charges received by the Authority under this Act; andSEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY 5 (b) all sums received by the Authority from such other sources as may be decided upon by the Central Government. (2) The Fund shall be applied for meeting— (a) the salaries and allowances payable to the Chairperson and members and administrative expenses including the salaries, allowances and pension payable to or in respect of officers and other employees of the Authority; and (b) the expenses on objects and for purposes authorised by this Act.”. 13. In section 29 of the principal Act,— Amendment of section 29. (a) for sub-section (3), the following sub-section shall be substituted, namely:— “(3) No identity information available with a requesting entity or offline verification-seeking entity shall be— (a) used for any purpose, other than the purposes informed in writing to the individual at the time of submitting any information for authentication or offline verification; or (b) disclosed for any purpose, other than purposes informed in writing to the individual at the time of submitting any information for authentication or offline verification: Provided that the purposes under clauses (a) and (b) shall be in clear and precise language understandable to the individual.”; (b) in sub-section (4), for the words “or core biometric information”, the words ‘‘, demographic information or photograph”, shall be substituted. 14. In section 33 of the principal Act,— Amendment of section 33. (i) in sub-section (1),— (a) for the words “District Judge”, the words “Judge of a High Court” shall be substituted; (b) in the proviso, after the words “hearing to the Authority”, the words “and the concerned Aadhaar number holder” shall be inserted; (c) after the proviso, the following proviso shall be inserted, namely:— “Provided further that the core biometric information shall not be disclosed under this sub-section.”; (ii) in sub-section (2), for the words “Joint Secretary”, the word “Secretary” shall be substituted. 15. After Chapter VI of the principal Act, the following Chapter shall be inserted, Insertion of namely:— new Chapter VIA. “CHAPTER VIA CIVIL PENALTIES 33A. (1) Where an entity in the Aadhaar ecosystem fails to comply with the Penalty for provision of this Act, the rules or regulations made thereunder or directions issued by failure to comply with the Authority under section 23A, or fails to furnish any information, document, or provisions of return of report required by the Authority, such entity shall be liable to a civil penalty this Act, rules, which may extend to one crore rupees for each contravention and in case of a regulations continuing failure, with additional penalty which may extend to ten lakh rupees for and directions. every day during which the failure continues after the first contravention. (2) The amount of any penalty imposed under this section, if not paid, may be recovered as if it were an arrear of land revenue.6 THE GAZETTE OF INDIA EXTRAORDINARY [PART II— Power to 33B. (1) For the purposes of adjudication under section 33A and imposing a adjudicate. penalty thereunder, the Authority shall appoint an officer of the Authority, who is not below the rank of a Joint Secretary to the Government of India and possessing such qualification and experience as may be prescribed, to be an Adjudicating Officer for holding an inquiry in such manner as may be prescribed. (2) No inquiry under sub-section (1) shall be initiated except by a complaint made by the Authority. (3) While holding an inquiry, the Adjudicating Officer shall— (a) provide the entity in the Aadhaar ecosystem against whom complaint is made, an opportunity of being heard; (b) have the power to summon and enforce the attendance of any person acquainted with the facts and circumstances of the case to give evidence or to produce any document which, in the opinion of the Adjudicating Officer, may be useful for or relevant to the subject matter of the inquiry. (4) If the Adjudicating Officer, on such inquiry, is satisfied that the entity in the Aadhaar ecosystem has failed to comply with any provision of this Act or the rules or regulations made thereunder or directions issued by the Authority under section 23A, or has failed to furnish any information, document, or return of report required by the Authority, the Adjudicating Officer may, by order, impose such penalty under section 33A as he thinks fit. Appeals to 33C. (1) The Telecom Disputes Settlement and Appellate Tribunal established Appellate under section 14 of the Telecom Regulatory Authority of India Act, 1997, shall be 24 of 1997. Tribunal. Appellate Tribunal for the purposes of hearing appeals against the decision of the Adjudicating Officer under this Act. (2) A person or entity in the Aadhaar ecosystem aggrieved by an order of the Adjudicating Officer under section 33B, may prefer an appeal to the Appellate Tribunal within a period of forty-five days from the date of receipt of the order appealed against, in such form and manner and accompanied with such fee as may be prescribed: Provided that the Appellate Tribunal may entertain an appeal after the expiry of the said period of forty-five days if it is satisfied that there was sufficient cause for not filing it within that period. (3) On receipt of an appeal under sub-section (2), the Appellate Tribunal may, after giving the parties to the appeal an opportunity of being heard, pass such orders thereon as it thinks fit, confirming, modifying or setting aside the order appealed against. (4) The Appellate Tribunal shall send a copy of every order made by it to the parties to the appeal and to the Adjudicating Officer. (5) Any appeal filed under sub-section (2) shall be dealt with by the Appellate Tribunal as expeditiously as possible and every endeavour shall be made by it to dispose of the appeal within six months from the date on which it is presented to it. (6) The Appellate Tribunal may, for the purpose of deciding an appeal before it, call for the records relevant to disposing of such appeal and make such orders as it thinks fit. Procedure and 33D. The provisions of sections 14-I to 14K (both inclusive), 16 and 17 of the powers of the Telecom Regulatory Authority of India Act, 1997 shall, mutatis mutandis, apply to the 24 of 1997. Appellate Appellate Tribunal in the discharge of its functions under this Act, as they apply to it Tribunal. in the discharge of its functions under that Act.SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY 7 5 of 1908. 33E. (1) Notwithstanding anything contained in the Code of Civil Procedure, 1908 Appeal to or in any other law for the time being in force, an appeal shall lie against any order, not Supreme Court of India. being an interlocutory order, of the Appellate Tribunal to the Supreme Court on any substantial question of law arising out of such order. (2) No appeal shall lie against any decision or order made by the Appellate Tribunal which the parties have consented to. (3) Every appeal under this section shall be preferred within a period of forty-five days from the date of the decision or order appealed against: Provided that the Supreme Court may entertain an appeal after the expiry of the said period of forty-five days if it is satisfied that there was sufficient cause for not filing it within that period. 33F. No civil court shall have jurisdiction to entertain any suit or proceeding in Civil court not respect of any matter which an Adjudicating Officer appointed under this Act or the to have jurisdiction. Appellate Tribunal is empowered, by or under this Act to determine, and no injunction shall be granted by any court or other authority in respect of any action taken or to be taken in pursuance of any power conferred by or under this Act.”. 16. In section 38 of the principal Act, for the words “three years”, the words Amendment “ten years” shall be substituted. of section 38. 17. In section 39 of the principal Act, for the words “three years”, the words Amendment “ten years” shall be substituted. of section 39. 18. For section 40 of the principal Act, the following section shall be substituted, Substitution of namely:— new section for section 40. “40. Whoever,— Penalty for unauthorised (a) being a requesting entity, uses the identity information of an individual use by in contravention of sub-section (2) of section 8; or requesting entity or (b) being an offline verification-seeking entity, uses the identity information offline of an individual in contravention of sub-section (2) of section 8A, verification- seeking entity. shall be punishable with imprisonment which may extend to three years or with a fine which may extend to ten thousand rupees or, in the case of a company, with a fine which may extend to one lakh rupees or with both.”. 19. In section 42 of the principal Act, for the words “one year”, the words Amendment “three years” shall be substituted. of section 42. 20. In section 47 of the principal Act, in sub-section (1), the following proviso shall be Amendment of inserted, namely:— section 47. “Provided that the court may, on a complaint made by an Aadhaar number holder or individual take cognizance of any offence punishable under section 34 or 35 or 36 or 37 or 40 or section 41.”. 21. After section 50 of the principal Act, the following section shall be inserted, Insertion of namely:— new section 50A. 43 of 1961. “50A. Notwithstanding anything contained in the Income-tax Act, 1961 or any Exemption other enactment for the time being in force relating to tax on income, profits or gains, from tax on the Authority shall not be liable to pay income-tax or any other tax in respect of its income. income, profits or gains.”. 22. In section 51 of the principal Act, for the words “Member, officer”, the words Amendment “Member or officer” shall be substituted. of section 51.8 THE GAZETTE OF INDIA EXTRAORDINARY [PART II— Amendment 23. In section 53 of the principal Act, in sub-section (2),— of section 53. (i) after clause (a), the following clause shall be inserted, namely:— “(aa) the purpose for which the requesting entity may be allowed by the Authority to perform authentication under sub-clause (ii) of clause (b) of sub-section (4) of section 4;”; (ii) after clause (g), the following clauses shall be inserted, namely:— “(ga) the qualification and experience of, and the manner of appointment of, the Adjudicating Officer under sub-section (1) of section 33B; (gb) the form, manner, and fee for an appeal to be filed under sub-section (2) of section 33C;”. Amendment 24. In section 54 of the principal Act, in sub-section (2),— of section 54. (i) for clause (a), the following clause shall be substituted, namely:— “(a) the entities or group of entities in the Aadhaar ecosystem under clause (aa), the biometric information under clause (g) and the demographic information under clause (k), the process of collecting demographic information and biometric information from the individuals by enrolling agencies under clause (m), and the modes of offline verification of Aadhaar number holder under clause (pa) of section 2;”; (ii) after clause (b), the following clauses shall be inserted, namely:— “(ba) the manner of generating an alternative virtual identity under sub-section (4) of section 3; (bb) the manner in which cancellation of an Aadhaar number may be carried out under sub-section (2) of section 3A;”; (iii) after clause (c), the following clauses shall be inserted, namely:— “(ca) standards of privacy and security to be complied with by the requesting entities under sub-section (4) of section 4; (cb) the classification of requesting entities under sub-section (5) of section 4;”; (iv) after clause (f), the following clauses shall be inserted, namely:— “(fa) the alternate and viable means of identification of individual under the proviso to clause (b) of sub-section (2) of section 8; (fb) the manner of obtaining consent under clause (a) of sub-section (2), the manner of providing information to the individual undergoing offline verification under sub-section (3), and the obligations of offline verification-seeking entities under clause (c) of sub-section (4) of section 8A;”. Omission of 25. Section 57 of the principal Act shall be omitted. section 57. PART III AMENDMENT TO THE INDIAN TELEGRAPH ACT, 1885 Amendment 26. In section 4 of the Indian Telegraph Act, 1885, after sub-section (2), the following of section 4 of sub-sections shall be inserted, namely:— Act 13 of 1885. ‘(3) Any person who is granted a license under the first proviso to sub-section (1) to establish, maintain or work a telegraph within any part of India, shall identify any person to whom it provides its services by—SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY 9 (a) authentication under the Aadhaar (Targeted Delivery of Financial and 18 of 2016. Other Subsidies, Benefits and Services) Act, 2016; or (b) offline verification under the Aadhaar (Targeted Delivery of Financial 18 of 2016. and Other Subsidies, Benefits and Services) Act, 2016; or 15 of 1967. (c) use of passport issued under section 4 of the Passports Act, 1967; or (d) use of any other officially valid document or modes of identification as may be notified by the Central Government in this behalf. (4) If any person who is granted a license under the first proviso to sub-section (1) to establish, maintain or work a telegraph within any part of India is using authentication under clause (a) of sub-section (3) to identify any person to whom it provides its services, it shall make the other modes of identification under clauses (b) to (d) of sub-section (3) also available to such person. (5) The use of modes of identification under sub-section (3) shall be a voluntary choice of the person who is sought to be identified and no person shall be denied any service for not having an Aadhaar number. (6) If, for identification of a person, authentication under clause (a) of sub-section (3) is used, neither his core biometric information nor the Aadhaar number of the person shall be stored. (7) Nothing contained in sub-sections (3), (4) and (5) shall prevent the Central Government from specifying further safeguards and conditions for compliance by any person who is granted a license under the first proviso to sub-section (1) in respect of identification of person to whom it provides its services. Explanation.—The expressions “Aadhaar number” and “core biometric information” shall have the same meanings as are respectively assigned to them in clauses (a) and (j) of section 2 of the Aadhaar (Targeted Delivery of Financial and 18 of 2016. Other Subsidies, Benefits and Services) Act, 2016.’. PART IV AMENDMENTS TO THE PREVENTION OF MONEY-LAUNDERING ACT, 2002 15 of 2002. 27. In Chapter IV of the Prevention of Money-laundering Act, 2002 (hereafter in this Insertion of new section Part, referred to as the principal Act), before section 12, the following section shall be 11A. inserted, namely:— ‘11A. (1) Every reporting entity shall verify the identity of its clients and the Verification of beneficial owner, by— identity by reporting (a) authentication under the Aadhaar (Targeted Delivery of Financial and entity. 18 of 2016. Other Subsidies, Benefits and Services) Act, 2016 if the reporting entity is a banking company; or (b) offline verification under the Aadhaar (Targeted Delivery of Financial 18 of 2016. and Other Subsidies, Benefits and Services) Act, 2016; or 15 of 1967. (c) use of passport issued under section 4 of the Passports Act, 1967; or (d) use of any other officially valid document or modes of identification as may be notified by the Central Government in this behalf: Provided that the Central Government may, if satisfied that a reporting entity other than banking company, complies with such standards of privacy and security under the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and 18 of 2016. Services) Act, 2016, and it is necessary and expedient to do so, by notification, permit such entity to perform authentication under clause (a):10 THE GAZETTE OF INDIA EXTRAORDINARY [PART II— SEC. 1] Provided further that no notification under the first proviso shall be issued without consultation with the Unique Identification Authority of India established under sub-section (1) of section 11 of the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016 and the appropriate regulator. 18 of 2016. (2) If any reporting entity performs authentication under clause (a) of sub-section (1), to verify the identity of its client or the beneficial owner it shall make the other modes of identification under clauses (b), (c) and (d) of sub-section (1) also available to such client or the beneficial owner. (3) The use of modes of identification under sub-section (1) shall be a voluntary choice of every client or beneficial owner who is sought to be identified and no client or beneficial owner shall be denied services for not having an Aadhaar number. (4) If, for identification of a client or beneficial owner, authentication or offline verification under clause (a) or clause (b) of sub-section (1) is used, neither his core biometric information nor his Aadhaar number shall be stored. (5) Nothing in this section shall prevent the Central Government from notifying additional safeguards on any reporting entity in respect of verification of the identity of its client or beneficial owner. Explanation.—The expressions “Aadhaar number” and “core biometric information” shall have the same meanings as are respectively assigned to them in clauses (a) and (j) of section 2 of the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016.’. 18 of 2016. Amendment 28. In section 12 of the principal Act, in sub-section (1), clauses (c) and (d) shall be of section 12. omitted. Amendment 29. In section 73 of the principal Act, in sub-section (2), clauses (j) and (jj) shall be of section 73. omitted. Repeal and 30. (1) The Aadhaar and Other Laws (Amendment) Ordinance, 2019 is hereby repealed. Ord. 9 of savings. 2019. (2) Notwithstanding the repeal of the said Ordinance, anything done or any action taken under the said Ordinance shall be deemed to have been done or taken under the corresponding provisions of this Act. ———— DR. G. NARAYANA RAJU, Secretary to the Govt. of India. UPLOADED BY THE MANAGER, GOVERNMENT OF INDIA PRESS, MINTO ROAD, NEW DELHI–110002 AND PUBLISHED BY THE CONTROLLER OF PUBLICATIONS, DELHI–110054. MGIPMRND—1958GI(S3)—24-07-2019.

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