The Union Cabinet approved alteration to the Aadhaar and Other Laws (Amendment) Bill 2019 on Wednesday, to incorporate a clause that will permit the utilization of Aadhaar data for state schemes and subsidies.
The changes are via a new section, 5A, inserted into the Act. State governments can now utilize India’s national biometric ID for schemes that are funded by the ‘Consolidated Fund of the State.‘
Prakash Javadekar, Ministry for Information & Broadcasting, stated during a press briefing,
“The states had demanded (this). As per a Supreme Court order, Aadhaar is allowed where the funds are going for beneficiary schemes coming straight from the central government. It will enable the use… the way subsidies to the central schemes are transferred from the central fund, Aadhaar can be used for transferring state subsidies,”
Earlier this month, Parliament had approved amendments to the Aadhaar Act to permit voluntary utilization of the 12-digit unique number as ID proof for getting mobile phone SIM cards and opening bank accounts. The government also inserted a new clause permitting the utilization of Aadhaar data by states for implementation of their schemes.