Explanation:

Aadhaar Authentication is the process wherein Aadhaar number, along with other attributes, including biometrics, are submitted online to the Central Identities Data Repository for its verification and such repository verifies the correctness, or the lack thereof, on the basis of the information available with it.

An authentication request is entertained by the UIDAI only upon a request sent by a requesting entity electronically in accordance with its regulations. The modes of authentication include: Demographic Authentication, one-time pin based authentication, Biometric-based authentication, Multi-factor authentication. To support strong end to end security and avoid request tampering and man-in-the-middle attacks, it is essential that encryption of data happens at the time of capture on the capture device.  Therefore, statement 1 and 2 both are correct.