UIDAI extends deadline to implement Aadhaar virtual ID till October-end

UIDAI also extended the deadline for implementation of other means like UID token and limited e-KYC for authentication of user agencies

The Unique Identification Authority of India (UIDAI) extended the deadline to implement Aadhaar virtual ID to end of October from the earlier date of August 31. Apart from that, UIDAI also extended the deadline for implementation of other means like UID token and limited e-KYC (know your customer) for authentication of user agencies, which include banks and telecom companies.

The move comes after certain entities requested the Aadhaar-issuing authority for more time to complete the migration to the new system as they were at various stages of implementation of the virtual ID, UID token and limited e-KYC, said UIDAI in a circular dated 30 August accessed by Mint.

According to UIDAI release, the telecom companies and e-sign companies, which may not have implemented the Virtual ID (VID) system after June 30 shall be charged Rs 0.20 for every transaction performed thereafter, a sort of 'disincentive', reported Press Trust of India.

The Virtual ID (VID) feature is aimed at giving users the option of not sharing their Aadhaar number at the time of authentication.

VID is a 16-digit number that can be generated by an Aadhaar card holder on the UIDAI website. This move is to provide the required anonymity with a randomly generated number that could be deactivated and regenerated according to one’s need.

UIDAI has introduced two categories of an Authentication User Agency (AUA), which have migrated to VID and UID Token. UIDAI classified its AUAs in 'Global' and 'Local' categories for providing authentication facility for VID through UID Token and Limited KYC. Global AUAs will be allowed access to complete KYC with Aadhaar number, and the entities classified as local AUAs will have limited access to KYC details of customers.

Banks and other financial institutions have been categorised as global AUAs (authentication user agency), and telecom companies amongst local AUAs for the purpose of authentication and KYC entitlement.

"Also, for all other the AUAs including banks but other than those mentioned above (telecom operators and E-sign service providers), it has been decided that they shall migrate to VID and UID Token...by 31st August 2018," the UIDAI statement said. UIDAI cautioned that in case they fail to migrate fully to the new system, it will be "free to take actions under the Aadhaar Act including imposition of financial disincentives and termination of license key", as reported by PTI. 

Furthermore, the UIDAI on August 31 had extended the deadline for banks to do minimum Aadhaar enrolments and updates in identified branches to November 1, according to a communication sent to banks.