In September 2018, the Supreme Court had struck down Section 57 of the Aadhaar Act by excluding the private companies from accessing the Aadhaar database for verification purposes.
But now the Government of India may tweak the current rules by taking into consideration amendment of the Telegraph Act and Prevention of Money Laundering Act. This changes will again provide legal backing and voluntary option for customers to link their Aadhaar with Bank Account and Mobile for KYC Verification.
Further according to the sources it is also being said that this amendment to the Aadhaar Act will also give legal validity to the virtual id introduced by UIDAI to avoid direct sharing of Aadhaar Number.
Theapex court order has left a space for the Government to list out particular services which is are needed to be linked to Aadhaar. So on this space the Government may fill the amendment in the Telegraph Act, which would include Aadhaar in eKYC Option. The Telegraph Act was last used during British Raj and now would be used by center to control establishment, maintenance and operation of all forms of financial, wired and wireless communication in the country.
In case of public emergencies the Government can take over or access these services,according to the act. And by modifying the PMLA, the account holders or mobile subscribers would be able to link their Aadhaar with Bank Account or Mobile Number in order to complete KYC, and this would be completely voluntary.
A Complete KYC Process if done with Aadhaar helps the Government to easily track the sources of the funds in case of money laundering.
However to address data privacy issues the Government is also working on the Data Protection Bill which was submitted by the Justice Srikrishna.