Telecom companies and banks insisting on Aadhaar as the sole identity and address proof, instead of allowing consumers looking to get a mobile connection or open an account to use their passport or ration card, will be liable to a penalty of up to Rs 1 crore and jail for their staffers concerned — ranging from three to 10 years.
The penalties for the violation have been proposed in amendments cleared by the Union Cabinet on Monday, which also seek to give Aadhaar holders the option to use the unique ID for completing KYC formalities.
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Government sources say the amendments to the Indian Telegraph Act and PMLA have been done keeping in mind a Supreme Court order on Aadhaar, which says the unique ID can be compulsory only for welfare services involving public funds.