UPSC Prelims 2020 Question:

Consider the following statements

1. Aadhaar metadata cannot be stored for more than three months.
2. State cannot enter into any contract with private corporations for sharing of Aadhaar data.
3. Aadhaar is mandatory for obtaining insurance products.
4. Aadhaar is mandatory for getting benefits funded out of the Consolidated Fund of India.
   
   

Which of the statements given above is/are correct?

Explanation:

• In the Aadhaar verdict, the Supreme Court's Constitution Bench ruled that metadata of  Aadhaar could not be stored for more than six months. The Aadhaar (Targeted Delivery of Financial and Other. Subsidies, Benefits and Services) Act, 2016 authorised the storage of such data for a period of five years. So, statement 1 is not correct.
  
  
• Section 57 of the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits, and Services) Act, 2016, which allows private entities to use Aadhaar for verification, was struck down by a five-judge Constitution Bench. According to the court, corporate bodies or private individuals cannot seek Aadhaar from applicants. So, statement 2 is correct.
  
  
• The Supreme Court ruled in 2018 that making Aadhaar mandatory for services other than welfare schemes is unconstitutional. Following that, in January 2019, the Insurance Regulatory and Development Authority of India (IRDAI) issued an advisory clarifying that Aadhaar is not required for obtaining insurance. So, statement 3 is not correct.
  
  
• Section 7 of the Aadhaar Act provides that Central or State Government may make possession of an Aadhaar number or Aadhaar Authentication, a condition for receipt of subsidies, benefits or services, which are funded out of the Consolidated Fund of India. The Supreme Court in the Aadhaar verdict had defined the welfare schemes as those funded from the Consolidated Fund of India and it upheld the validity of Section 7 of the Aadhaar Act.  So, statement 4 is correct.
  
  

Therefore, option (2) is the correct answer.

Subject: Polity | Governance