NEW DELHI: Union cabinet have cleared Aadhar law amendment bill that penalises 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. They will be liable to a penalty of up to Rs 1 crore and jail for their concerned staffs — ranging from three to ten years.

The bill might be presented at the Parliament in the very next session. The bill also seek to give Aadhaar holders the option to use the unique ID for completing KYC formalities. Consumers can use their passport or ration card to get a mobile coonection or open a bank account. 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 shouldn't be made compulsory for to get a mobile coonection or open a bank account. The amendment also set out rules for consent in case of minor and opt-out option at age 18.