Aadhaar Virtual ID is now operational, says UIDAI - Pragnya IAS Academy - News Analysis.

Aadhaar Virtual ID is now operational, says UIDAI.

Most of the financial institutions have migrated to the Aadhaar Virtual ID system slated to be rolled out on 1 July

The Aadhaar issuing authority Unique Identification Authority of India (UIDAI) on Saturday said that its Virtual ID system is now operational as most of the authentication user agencies, including financial institutions have migrated to the new system. The Aadhaar Virtual ID is slated to be rolled out from 1 July.
The Virtual ID is a 16-digit random number mapped with Aadhaar number. It can only be generated, replaced or revoked by the Aadhaar number holder. It has been introduced so that the actual 12-digit Aadhaar number need not be shared for authenticating identity. The move is part of UIDAI’s initiative to put in place multi-layered security to reinforce privacy for Aadhaar holders.
Banks have been given time till 31 August to migrate to the new system which supports authentication using Virtual IDs and UID tokens.
“It has been observed that a number of AUAs have already migrated to production environment using APIs 2.5 for Virtual ID implementation and most of the remaining AUAs have tested Virtual ID and UID Token in pre-production environment APIs 2.5. We are requesting with these agencies to fully migrate to production environment by the stipulated date,” UIDAI CEO Ajay Bhushan Pandey said in a statement.
UIDAI had in January said it would release necessary APIs (application programming interfaces) by 1 March. All agencies had been directed to make the necessary changes for the use of Virtual ID, UID token and limited KYC and operationalize it by 1 June, which got delayed by a month to 1 July.
UIDAI has introduced two categories of an Authentication User Agency (AUA)—an entity engaged in providing Aadhaar-enabled services. Local AUA, which is the limited KYC category and a global AUA, will have access to e-KYC using the Aadhaar number. An AUA may be a government, public or a private legal agency registered in India which uses Aadhaar authentication services provided by UIDAI.
All banks, be it commercial banks, payment banks, regional banks, rural banks, cooperative banks, small finance banks, life insurance companies and National Payments Corporation of India (NPCI) have been categorized as global AUAs. Prepaid payment instruments (PPIs), non-bank financial companies (NBFCs), telecom operators and non-life insurance companies are among those classified as local AUAs.
According to UIDAI, telecom companies and e-sign provider AUAs not using the upgraded systems beyond 30 June shall be charged ₹ 0.20 for every transaction performed. However, if these AUAs are able to complete migration to the new system by 31 July, the “authentication transaction charges imposed for the above said period of 1st to 31st July 2018 shall be waived off,” it said.
In case of their failure, UIDAI shall be free to take actions under The Aadhaar Act, 2016, including imposition of financial disincentives and termination of license key, the statement added.
UIDAI also said that it is in the process of review of the classification of Global and Local AUAs based on the security and risk assessment of the authentication process of the AUAs. Pending this review, AUAs which were not classified earlier are now being provisionally classified (Source: Livemint)


The above Article can also be read using the link below:

Aadhaar Virtual ID is now operational, says UIDAI.

Aadhaar Virtual ID to be accepted from July - Pragnya IAS Academy - News Analysis.

Aadhaar Virtual ID to be accepted from July.

Aadhaar Virtual ID, a 16-digit random number mapped with the Aadhaar number, can only be generated, replaced or revoked by the Aadhaar card holder.

With the Unique Identification Authority of India (UIDAI) mandating the implementation of Virtual ID from 1 July, the way financial institutions have been verifying information about customers is going to change. Virtual ID is a 16-digit random number mapped with the Aadhaar number. It can only be generated, replaced or revoked by the Aadhaar number holder. “It will not be possible to derive the Aadhaar number from the Virtual ID,” a circular issued by UIDAI in January said. There will only be one active and valid Virtual ID for an Aadhaar number at any given time.
How to generate Aadhaar Virtual ID?
Aadhaar number holders can generate Virtual ID from the UIDAI website, Aadhaar enrolment center or the mAadhaar app. All that the user needs to ensure is that their mobile phone number is linked with the Aadhaar database so that they can receive an OTP or one-time password to generate VID. The facility has been rolled out by UIDAI from 2 April.
Why has Aadhaar Virtual ID been introduced?
The move is part of UIDAI’s initiative to put in place multi-layered security to reinforce privacy protection for Aadhaar holders. Virtual IDs allow Aadhaar number holders to share VID instead of their Aadhaar number during authentication, thus reducing collection of Aadhaar numbers by various agencies, said a UIDAI circular.
How to use it?
The Virtual ID can be used for the purpose of authentication in the same way the Aadhaar number is used. As of now, when a customer has to authenticate himself/herself to avail financial services, he/she has to give the 12-digit Aadhaar number and an OTP that he/she receives on the mobile phone.
From 1 July, the customer will not be required to give the Aadhaar number, instead the 16-digit Virtual ID will be provided to the agency or company.
Where to use Aadhaar Virtual ID?
UIDAI has introduced two categories of an Authentication User Agency (AUA)—an entity engaged in providing Aadhaar-enabled services. Local AUA, which is the limited KYC category and a global AUA, which will have access to e-KYC using the Aadhaar number.
An AUA may be a government, public or a private legal agency registered in India which uses Aadhaar authentication services provided by UIDAI.
All banks-commercial banks, payment banks, regional banks, rural banks, cooperative banks, small finance banks; life insurance companies and National Payments Corporation of India (NPCI) have been categorized as global AUAs whereas prepaid payment instruments (PPIs), non-bank financial institutions (NBFCs), telecom operators and non-life insurance companies are amongst those classified as local AUAs.
This means that if you want to authenticate yourself to avail services of any of these local AUAs, you will have to use Aadhaar Virtual ID. However, the use of Virtual ID for availing services of global AUAs is optional for users.
However, the global AUAs too have been instructed to upgrade their systems to provide authentication services using Virtual ID, said UIDAI in a circular issued on 6 June.
According to an industry expert, who did not wish to be named,Aadhaar Virtual ID has been introduced as an alternate ID for protecting privacy of Aadhaar number, especially for online customers doing OTP based e-KYC and authentication.
“ However, the distinction between local and global AUAs needs more clarity especially when KYC regulation and specific use cases are driving the classification among entities getting Global and Local AUA licenses,” added the person.


The above Article can also be read using the link below:

Aadhaar Virtual ID to be accepted from July.

UIDAI launches 'Virtual ID' to address privacy concerns related to Aadhaar - Pragnya IAS Academy - News Analysis

UIDAI launches 'Virtual ID' to address privacy concerns related to Aadhaar.

HIGHLIGHTS
• The new feature will allow Aadhaar holders to quote their Virtual ID (VID) number without actually disclosing the 12-digit Aadhaar number for authentication or verification purposes.
• According to UIDAI in the beta form, users can generate their Virtual ID and use it to update address in Aadhaar online for the time being.

Unique Identification Authority of India (UIDAI) has launched the much-awaited 'Virtual ID' which will be a random 16-digit number mapped to a person's Aadhaar number.
The concept of Virtual ID was announced earlier this year to address privacy concerns. The new feature will allow Aadhaar holders to quote their Virtual ID (VID) number without actually disclosing the 12-digit Aadhaar number for authentication or verification purposes.
UIDAI had stated that it will be compulsory for all agencies that undertake authentication to accept the VID from their users from June 1, 2018. According to UIDAI in the beta form, users can generate their Virtual ID and use it to update address in Aadhaar online for the time being.
"...Soon, service providers will start accepting VID in place of Aadhaar number. For now, you can use this for online address update in your Aadhaar," the UIDAI said in a tweet. The tweet urges the users to generate their VIDs and gives a link of the Aadhaar website for the same. The VID would give any authorised agency details like name, address and photograph, which are enough for any verification.(Source: The Times of India)


The above Article can also be read using the link below:

UIDAI launches 'Virtual ID' to address privacy concerns related to Aadhaar.