The Cabinet Wednesday cleared a Bill to allow voluntary use of Aadhaar as identity proof for opening bank accounts and procuring mobile phone connections.
The Aadhaar Amendment Bill 2019 will be introduced in the ensuing session of Parliament, according to an official release.
The Bill - which replaces the Aadhaar ordinance - seeks to give the effect to the changes in the Aadhaar Act such as giving a child an option to exit from the biometric ID programme on attaining 18 years of age.
"The decision would enable UIDAI (Unique Identification Authority of India) to have a more robust mechanism to serve the public interest and restrain the misuse of Aadhaar...Subsequent to this amendment, no individual shall be compelled to provide proof of possession of Aadhaar number or undergo authentication for the purpose of establishing his identity unless it is so provided by a law made by Parliament," the release added.
The amendment provides for stiff penalties for violation of norms set for the use of Aadhaar.