The Bill will now be placed before the Rajya Sabha for discussion and passing in the winter session as the Union Cabinet has approved the draft with certain amendments, official sources privy to the development said.
Besides giving statutory status to the Unique Identification Authority of India (UIDAI), the Bill seeks to provide legal backing to Aadhaar, which is used by ministries, departments and states to disburse subsidies.
The UIDAI, which issues 12-digit Aadhaar numbers to residents, at present operates through an executive order.
According to the official, the amended Bill also addresses the issue of whether the UIDAI can enroll all residents or Indian nationals only.
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"The Aadhaar number can be issued to any resident, including foreign national. It does not confers any rights regarding citizenship or domicile or any other right as per Section 6 of the Bill," the official explained.
"Aadhaar establishes the identity of a person and not the nationality. It also serves as proof of residence. Moreover, it is a voluntary facility and not mandatory," he added.
Earlier last month, the Supreme Court had asked not to deny benefits to those who don't have Aadhaar numbers.