Notes on Clauses
Clause 1.—This clause seeks to provide for short title and commencement of the Act.
Clause 2.—This clause seeks to amend section 2 of the Aadhaar (Targeted Delivery of
Financial and Other Subsidies, Benefits and Services) Act, 2016 (the Aadhaar Act) relating
to definitions so as to provide for new definitions of certain expressions used in the Bill,
which, inter alia, include the definitions of "Aadhaar number", "Aadhaar ecosystem",
"Adjudication Officer", "Appellate Tribunal", "child", "offline verification" and "offline
verification seeking entity".
Clause 3.—This clause seeks to amend section 3 of the Aadhaar Act relating to Aadhaar
number so as to insert a new sub-section (4) therein providing for "any alternative virtual
identity generated by the Authority" within the meaning of Aadhaar number.
Clause 4.—This clause seeks to insert a section 3A in the Aadhaar Act which provides
for "Aadhaar number of Children".
Clause 5.—This clause seeks to amend section 4 of the Aadhaar Act relating to
properties of Aadhaar number so as to substitute sub-section (3) thereof with five new
sub-sections which provide for voluntary use of Aadhaar number, conditions under which
entities can perform authentication, classification of entities into those that can use Aadhaar
number and those that can use only alternative virtual identity, offering alternate and viable
means of identification and condition for mandatory authentication.
Clause 6.—This clause seeks to amend section 8 of the Aadhaar Act relating to
authentication of Aadhaar number so as to amend sub-sections (2) and (3) to provide for the
requirement of obtaining the consent of the parent or guardian before authenticating the
Aadhaar number issued to a child.
Clause 7.—This clause seeks to insert a new section 8A in the Aadhaar Act so as to
provide for offline verification of Aadhaar number.
Clause 8.—This clause seeks to substitute section 21 of the Aadhaar Act relating to
officers and other employees of Authority so as to provide for appointment of officers and
other employees by the Authority.
Clause 9.—This clause seeks to insert a new section 23A to the Aadhaar Act relating
to power of Authority to issue directions. It provides that the Authority may issue directions
to the entities in the Aadhaar ecosystem for the discharge of its functions under the Act.
Clause 10.—This clause seeks to substitute section 25 of the Aadhaar Act to provide
for constitution of a Unique Identification Authority of India Fund.
Clause 11.—This clause seeks to amend section 29 of the Aadhaar Act relating to
restriction on sharing information. It substitutes sub-sections (3) and (4) thereof so as to
provide that identity information is not used for any other purpose.
Clause 12.—This clause seeks to amend section 33 of the Aadhaar Act relating to
disclosure of information in certain cases. It seeks to amend sub-sections (1) and (2) thereof,
inter alia, to provide the individual, whose information is sought to be released, an opportunity
of hearing and stepping up disclosure permissions to higher levels.
Clause 13.—This clause seeks to insert a new Chapter VIA in the Aadhaar Act so as to
provide for civil penalties. The proposed new section 33A provides for civil penalty which
may extend to one crore rupees for each contravention, for failure to comply with provisions
of the Act, rules, regulations and directions by any entity in the Aadhaar ecosystem. The
proposed new section 33B provides for appointment of an Adjudicating Officer by the
Authority and the procedure and powers of such officer. The proposed new section 33C
13