The Union Cabinet today approved the National Identification Authority of India Bill that will give statutory status to the Unique Identification Authority of India, UIDAI.
Official sources said the bill, besides this also seeks to provide legal backing to Aadhaar, which is used to disburse subsidies.

The UIDAI, which issues the 12-digit Aadhaar number toresidents, currently operates through an executive order.
The new law will provide for the creation of a National Identification Authority of India, which will oversee implementation of the Aadhaar project. It also seeks to define penalties in case of misuse of data collected under the project.

Last month, the Supreme Court had ruled that Aadhaar cards could not be made mandatory for a citizen to avail of government benefits and services. The Apex court had said that the number should not be allotted to any illegal immigrant.