DoT, UIDAI Direct Telcos And Wallets From Accessing Aadhaar Details, Tell Them To Go For Virtual ID Instead

A user uses their fingerprint to perform Aadhaar-based KYC for a Jio connection

In order to promote the Virtual Identity (VID) for Aadhaar authentication, the Unique Identification Authority of India (UIDAI) has said that digital wallets will no longer have access to Aadhaar, reports BloombergQuint. In a letter dated 16 May, the UIDAI has segregated agencies as local and global authentication agencies of which the latter – which includes banks and payments banks – will have unrestricted access to Aadhaar data for electronic Know Your Customer (e-KYC) – while wallets and other agencies, classified as local agencies will have to use the VID.

Simultaneously, the Department of Telecommunications (DoT) has ordered all telecom providers (telcos) to provide the customer with the option of either using their Aadhaar or the VID to do what it terms Limited KYC, reports Mint. In a

...all licencees shall implement the ....changes proposed by the UIDAI regarding use of Virtual ID as an alternative of Aadhaar number, UID tokens and limited KYC concept in their system/networks subject to the adherence of existing Aadhaar-based eKYC processes for issuing new mobile connection to subscribers and re-verification of existing mobile subscribers
The DoT’s notification

The DoT has also said that once the KYC process is completed, telcos are required to delete the data and not store it.

The Virtual ID system is set to come in effect on 1 July, 2018.

How does the system work? Watch this video to know more: