Aadhaar: UIDAI Extends Deadline For Deployment Of Virtual ID System To August

Aadhaar: UIDAI Extends Deadline For Deployment Of Virtual ID System To August

SUMMARY

The UIDAI Had Earlier Set July 1 As The Deadline For The Use Of Aadhaar Virtual ID

In a bid to give a breather to banks and government departments, the Unique Identification Authority of India (UIDAI) has now extended the deadline for deployment of the 16-digit virtual ID (VID) as an alternate to Aadhaar numbers till August this year.

The decision was well-received. Bank officials said that companies were facing multiple problems in generating Virtual ID numbers from mobile phones and there was lack of awareness among the public about the VID.

The reports have also said that banks have sought time to upgrade their systems to be able to process VID applications for authentication of Aadhaar users for various purposes. This extension will also allow Aadhaar-enabled payment system (AEPS) transactions to continue for two more months.

However, at the same time, the UIDAI has started levying a charge of 20 paise per transaction on telecom and e-sign generating companies that have not implemented the new system from July 1.

It will reverse the charges if these firms comply by July-end.

In a statement, Ajay Bhushan Pandey, CEO, UIDAI, said that while some authentication user agencies (AUAs) carry out the authentication in a controlled environment in the presence of their employees, other AUAs perform it in the presence of agents, who often cater to more than one AUA.

“It is imperative that on the basis of the level of supervision in the authentication ecosystem and the risk assessment, the VID/UID token-associated security features should be implemented in a certain category of AUAs sooner without any delay,” he said.

The UIDAI chief also added that the Virtual ID is a critical security measure for protecting residents’ privacy and their Aadhaar numbers.

However, users have been facing difficulty in creating Virtual IDs. Reports claimed that the process of generating a VID is more-or-less smooth on the desktop, but it is not working for smartphone users, who form a large part of the consumer base.

The UIDAI had introduced VID as one of the two-layered safety net features to avoid data breaches. It is said that with VID, there will be no need to share the real Aadhaar number at the time of authentication.

Instead, a randomly generated 16-digit code will be shared with the agency every time. This ID, along with the biometrics of the user — like the name, address, and photographs — can provide the necessary details to the concerned AUA without allowing it to track the actual Aadhaar number of the user.

The limited KYC feature will provide AUAs with only the essential details; they can do their own KYC and identify users with ‘tokens’. Also, as stated by the UIDAI in a media statement, “Agencies that undertake authentication will not be allowed to generate the Virtual ID on behalf of the Aadhaar holder.”

The Aadhaar system is filled with loopholes and has seen continued data breaches, but with Virtual ID and face recognition features, the UIDAI now aims to prevent user data from being compromised.

[The development was reported by ET.]

Note: We at Inc42 take our ethics very seriously. More information about it can be found here.

You have reached your limit of free stories
Become An Inc42 Plus Member

Become a Startup Insider in 2024 with Inc42 Plus. Join our exclusive community of 10,000+ founders, investors & operators and stay ahead in India’s startup & business economy.

2 YEAR PLAN
₹19999
₹7999
₹333/Month
Unlock 60% OFF
Cancel Anytime
1 YEAR PLAN
₹9999
₹4999
₹416/Month
Unlock 50% OFF
Cancel Anytime
Already A Member?
Discover Startups & Business Models

Unleash your potential by exploring unlimited articles, trackers, and playbooks. Identify the hottest startup deals, supercharge your innovation projects, and stay updated with expert curation.

Aadhaar: UIDAI Extends Deadline For Deployment Of Virtual ID System To August-Inc42 Media
How-To’s on Starting & Scaling Up

Empower yourself with comprehensive playbooks, expert analysis, and invaluable insights. Learn to validate ideas, acquire customers, secure funding, and navigate the journey to startup success.

Aadhaar: UIDAI Extends Deadline For Deployment Of Virtual ID System To August-Inc42 Media
Identify Trends & New Markets

Access 75+ in-depth reports on frontier industries. Gain exclusive market intelligence, understand market landscapes, and decode emerging trends to make informed decisions.

Aadhaar: UIDAI Extends Deadline For Deployment Of Virtual ID System To August-Inc42 Media
Track & Decode the Investment Landscape

Stay ahead with startup and funding trackers. Analyse investment strategies, profile successful investors, and keep track of upcoming funds, accelerators, and more.

Aadhaar: UIDAI Extends Deadline For Deployment Of Virtual ID System To August-Inc42 Media
Aadhaar: UIDAI Extends Deadline For Deployment Of Virtual ID System To August-Inc42 Media
You’re in Good company