UIDAI to introduce Virtual ID, limited KYC to improve Aadhaar privacy

Amid outcry over reported Aadhaar data breach, the Unique Identification Authority of India (UIDAI) has come up with a 2-layer safety net to limit the use of the 12-digit code. 

According to a report by the Economic Times, the UIDAI today said that it will create a Virtual ID and limit the Know Your Customer (KYC) for data safety. 

The Virtual ID will end the need to share user's Aadhaar number at the time of authentication.  A 16-digit, randomly-generated number, will be used for authentication instead of Aadhaar number. This Virtual ID will it impossible for anyone to locate the Aadhaar.

All agencies will migrate to the new system by June 1, the report said. 

The UIDAI has also come up with a limited UIDAI which will provide agency-specific UID. The UID will eliminate the possibility of agencies storing Aadhaar number and allow them to their own KYC without banking on the 12-digit biometric code. 

The move comes a day after an RBI-backed report found that the benefits of the country’s biometrics-based identity system are unclear.

Last week, reports emerged that Aadhaar data pertaining to more than 1 billion people was available to anyone willing to pay just Rs 500. The UIDAI had even registered an FIR against the journalist who reported the breach.