There have been instances of data leak using aadhaar ID and to address such concerns UIDAI has come up with the concept of Vitual ID. Before this, Aadhaar locking feature was introduced through which residents can lock their biometric credentials for preventing potential misuse.
Read about How to lock aadhaar card online
In the current regime, for availing various social benefit schemes as well as other financial services, Aadhaar ID has to be produced for the authentication of one's identity. But with the virtual ID in place, users will no more be required to provide their 12-digit unique ID and instead can provide a randomly generated 16-digit number called Virtual ID.
This ID along with the biometric details shall suffice the purpose of verification with limited details of the individual including name, photograph and address.
How to generate Virtual ID or VID?
As per the UIDAI, the virtual ID can be used for the purpose of authentication at various places in place of the actual Aadhaar number and it can be generated only by the Aadhaar Card holder. The temporary, revocable ID, mapped to once aadhaar can be generated by the user as many times as he wishes. From the VID, it will not be possible to fetch aadhaar number of the person concerned.
The generation of VID or its retrieval in case the aadhaar card holder forgets it will be made possible through the UIDAI portal, mAadhaar app or enrolment centre.
Limited KYC concept also introduced
As per this concept, only limited or need-based details of the aadhaar card holder shall be given to the agency providing some service.
All service providers and authorized agencies are required to mandatorily accept virtual Id or VID from their users for the purpose of authentication from June 1, 2018. Financial penalty shall be imposed on agencies which do not provide this additional option of authentication to their customers.
"Aadhaar number holder can use Virtual ID in lieu of Aadhaar number whenever authentication or KYC services are performed. Authentication may be performed using the Virtual ID in a manner similar to using Aadhaar number," said a UIDAI circular.