RBI Asks Banks to Implements Aadhaar Virtual ID Systems by 30th June

Aadhaar Virtual ID in Banks – The Reserve Bank of India (RBI) has asked all banks to implement the Aadhaar enabled Virtual ID system by 30th June. The implementation of virtual IDs (VIDs) in lieu of Aadhaar will help user to migrate to the limited know-your-customer mechanism. “This means customers can choose to give the bank either their Aadhaar numbers or the VIDs“. 

The UIDAI had enabled the Virtual ID beta testing in the month of April with the launch of beta version of VID feature that allows users to generate the VID and use it to update address in Aadhaar online.

Post implementation of this feature customers can choose to give the bank either their Aadhaar numbers or the VIDs generated by the Unique Identification Authority Of India (UIDAI), which authenticates their names and address details from the back-end. 

The RBI has sent the directive in this regard to all banks earlier this month with proposed launch of  July 1. RBI had made it very clear through letter that the Non-compliance by banks will invite penal measures.

Read – Steps To Create Virtual ID for Your Aadhaar Number

What is Aadhaar Virtual ID ?

  1. The Aadhaar Virtual ID or VID is a random system generated 16-digit number mapped to a person’s Aadhaar number.
  2. VID together with bio metrics of the user, would give any authorized agency such as a bank or a mobile company only limited details such as name, address and photograph, which are enough for any verification.
  3.  A user can generate as many VIDs as they want, but the older ID gets automatically cancelled once a fresh one is generated.

This new feature will help in curbing the collection and storage of personal and demographic data of individuals fraudulently.

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