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
Statement 1 is incorrect: The Supreme Court ruled that Aadhaar metadata cannot be stored for more than six months, which invalidated the provision in the Aadhaar Act that allowed the storage of such data for up to five years.
Statement 2 is correct: The Supreme Court struck down Section 57 which allowed private corporations to verify Aadhaar data. The Court held this provision unconstitutional, as it was seen to violate privacy rights.
Statement 3 is incorrect: The 2018 Supreme Court judgment declared that making Aadhaar mandatory for services beyond welfare schemes, including financial services like insurance or for preventing money laundering, was unconstitutional. In response to this ruling, the IRDAI issued an advisory in 2019, clarifying that Aadhaar is not mandatory for obtaining insurance. It also withdrew its earlier 2017 policy that had made Aadhaar compulsory for insurance in the context of anti-money laundering measures.
Statement 4 is correct: In the Aadhaar verdict, the Supreme Court upheld Section 7 of the Aadhaar Act, which allows the Central or State Governments to make Aadhaar authentication mandatory for receiving subsidies, benefits, or services funded by the Consolidated Fund of India. The Court defined welfare schemes as those funded by the Consolidated Fund of India, thus validating the use of Aadhaar for such schemes.
Therefore, the correct answer is B. 2 and 4 only.