Mumbai, January 18: To further strengthen privacy and security of Aadhaar number holders, the Unique Identification Authority of India (UIDAI) has introduced virtual ID for Aadhaar holders. The new system with the introduction of limited KYC  is aimed at curbing the leak and enhance the privacy of the 119-crore Indian Citizens to whom Aadhaar has been issued. UIDAI, the authority that issues Aadhaar to all the Indians introduced a new concept of ‘Virtual ID’ which Aadhaar-card holder can generate from its website - uidai.gov.in.

With the latest move, the UIDAI has introduced a two-layer protection on the use of Aadhaar as a proof of identity. This temporary number will act as an OTP, will be valid for a limited period that will be decided by the UIDAI, unless it is revoked and replaced by the Aadhaar card holder.

The new system will be introduced by March 1.  It must be noted that a randomly-generated 16-digit temporary number can be shared instead of furnishing the biometric ID with third-party agencies. This process will help individuals with a wide range of purposes, including SIM verification. All service providers will have to upgrade their systems to mandatorily allow for the new system from June.

What is limited KYC:

The introduction of Limited KYC will now allow agencies to do their own paperless KYC process without access to the Aadhaar number. This move will eliminate agencies storing the Aadhaar numbers of users in their databases. UIDAI will only provide need-based or limited details of a user to an authorised agency that is providing a particular service like telecom operators. VID allows individuals to avoid sharing their Aadhaar number.

Here’s how it will work:

  • The process will be introduced on March 1, 2018. An individual will be needed to log on to UIDAI website uidai.gov.in and enter the 12-digit Aadhaar number.

  • From June 1, 2018 it will be compulsory for all agencies that undertake Aadhaar authentication to accept the Virtual ID from their users.

  • The latest move is believed to provide two layers of firewalls between Aadhaar holders and authentication agencies.

  • The website will generate a 16-digit temporary ‘Virtual id’. All services such as telecom operators, banks etc. must accept it instead of the Aadhaar number

  • The 16-digit temporary number which is just like an OTP can be used instead of Aadhaar number.

  • Agencies that do not migrate to the new system to offer this additional option to their users by the stipulated deadline will face financial disincentives.

  • As per the UIDAI, agencies that undertake authentication would not be allowed to generate the Virtual ID on behalf of Aadhaar holder.

  • It has to be noted that this temporary number can be generated, revoked or replaced through UIDAI’s portal, mobile app, enrolment centres at any time by the Aadhaar card holder.

The latest move comes amid heightened concerns around the collection and storage of personal and demographic data of individuals. Authentication may be performed using the Virtual ID in a manner similar to using Aadhaar number.

How secure is the new Aadhaar Virtual ID

As per the UIDAI statement, the last digit of the VID is the checksum using 'Verhoeff' algorithm as in Aadhaar number. There will be only one active and valid VID for an Aadhaar number at any given time. Verhoeff algorithm is a checksum formula for error detection developed by the Dutch mathematician Jacobus Verhoeff.

UIDAI said this move will reduce the collection of Aadhaar numbers by various agencies and said that it will not be possible to derive the Aadhar issuing by VID and would protect the identity of all individuals using it. The Aadhaar using body said that VID will be a temporary, revocable 16-digit random number mapped with the Aadhaar number. "The Aadhaar number being the permanent ID for life, there is need to provide a mechanism to ensure its continued use while optimally protecting the collection and storage in many databases," the UIDAI said in a recent notification.

(The above story first appeared on LatestLY on Jan 18, 2018 10:31 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).