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Consider the following statements:

  1. Aadhar metadata cannot be stored for more than three months.
  2. The state cannot enter into any contract with private corporations for sharing of Aadhar data.
  3. Aadhar is mandatory for obtaining insurance products.
  4. Aadhar is mandatory for getting benefits funded out of the consolidated fund of India.
Which of the above-given statements is/are correct?
  1. 1 and 4 only
  2. 2 and 4 only
  3. 3 only
  4. 1, 2 and 3 only

Explanation

Statement 1 is incorrect
  • Regulation 27 of Aadhaar (Authentication Regulations) 2016, which allowed retention of data for 5 years, was struck down by the Supreme Court. As per the SC Judgement in 2018, retention of data beyond six months is impermissible.
Statement 2 is correct
  • In its 2018 judgment, the Supreme Court ruled that Aadhaar could be used for welfare purposes while affirming the fundamental right to privacy. The Court struck down Section 57 of the Aadhaar Act, which allowed private entities to use Aadhaar authentication for identity verification in service delivery. The state cannot enter into contracts with private companies for sharing Aadhaar data.
Statement 3 is incorrect
  • As per IRDAI (Insurance Regulatory and Development Authority of India), Aadhaar is not mandatory to buy an insurance policy.
Statement 4 is correct
  • As per section 7 of the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016, any individual who is desirous of availing any subsidy, benefit or service for which the expenditure is incurred from the Consolidated Fund of India, shall be required to furnish proof of possession of an Aadhaar number or undergo Aadhaar-based authentication. In case the individual does not have Aadhaar, he/she shall make an application for enrolment, and the individual shall be offered alternate and viable means of identification for delivery of the subsidy, benefit or service.
Answer: (b) 2 and 4 only; Difficulty Level: Medium
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