DoT, UIDAI ask telcos, wallets to use Virtual ID in place of Aadhaar for KYC

The Unique Identification Authority of India (UIDAI) has said that digital wallets and telecom companies will no longer have access to Aadhaar and that they should instead use Virtual Identity in its place, says a report in Swarajya.

UIDAI , however, allows banks, including payment banks to connect Aadhaar data for electronic know-your-customer (e-KYC) and has segregated agencies as local and global authentication agencies for allowing such access.
Wallets and other agencies, classified as local agencies, will have to use the VID. The Virtual ID system is set to come in effect on 1 July 2018.
The Department of Telecommunications (DoT) has directed telecom service providers to provide the customer with the option of either using their Aadhaar or the VID.
DoT has asked all licencees to 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 has also said that once the KYC process is completed, telcos are required to delete the data and not store it, the report adds.