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Budget 2016: Aadhaar project to be given statutory backing -Shreeja Sen

-Livemint.com

The move to introduce a law to bring statutory backing for Aadhaar will clear decks for Jan Dhan Yojana, Aadhaar and Mobile number aimed at expanding access to financial services

New Delhi:
Statutory backing for the Aadhaar unique identification scheme will be introduced during the financial year 2016-17, finance minister Arun Jaitley said on Monday in his budget speech. The bill will be introduced in the current budget session.

The government’s move to introduce a law to bring statutory backing for Aadhaar will clear the decks for JAM—Jan Dhan Yojana, Aadhaar and Mobile number—that is aimed at expanding access to financial services.

The Aadhaar project, introduced during the United Progressive Alliance regime, was passed the basis of a government notification in the absence of a law.

The Aadhaar or Unique Identification (UID) project is currently the subject of a hearing at the Supreme Court. One of the major points of controversy is the lack of a statutory backing.

The use of Aadhaar, considered key to India’s progress toward a cashless economy, is restricted to beneficiaries of the public distribution system, subsidies for cooking gas and kerosene, Mahatma Gandhi National Rural Employment Guarantee Scheme, Pradhan Mantri Jan Dhan Yojana, pension payments by central and state governments, and the Employees’ Provident Fund Scheme.

The key question pending before the Supreme Court is whether the right to privacy is a fundamental right. Some petitioners in the case claim that the Aadhaar project, by collecting and sharing biometric data of citizens, violates this right.

The government’s financial inclusion plan and direct benefit transfer include digital initiatives such as biometric attendance, Jan Dhan Yojana, digital certificates, pension payments and the proposed introduction of payments banks, which hinge on the Aadhaar UID number.

The UID project was conceived by the erstwhile Planning Commission,through a notification in January 2009. It aims to prevent leakages in benefit transfers and authenticate recipients of such benefits.