Accordingly, it has introduced a virtual identification for the ID holders so that the actual number need not be shared to authenticate their identity.
"What about all the databases that are already linked up with our Aadhaar number?"
As per the circular, a virtual ID will be valid for a defined period of time and every time a new one gets generated by the user, the older one gets automatically canceled.
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Users can give their Virtual ID to service providers along with fingerprints at the time of authentication.
The first relates to the report by Buzzfeed News that the creator of Aadhaar, and the head of UIDAI from 2009 to 2014, Nandan Nilekani, himself had tweeted out his Aadhaar number, with the first 8 digits redacted.
In the new system, UIDAI will evaluate Authentication User Agencies (AUAs) and split them into two categories: Global AUAs and Local AUAs.
Users will have to log on to the website, app or visit a centre, where they can generate the ID as many times as needed, within a time period to be stipulated by the UIDAI. In the current system, the five details of the Aadhaar holder is shared - name, date of birth, address, photo and mobile number - with the service provider at the time of authentication.
Reports says UIDAI will come out with an API to implement the virtual Aadhaar ID by March 1 and that a number of agencies that will be given access to do KYC using Aadhaar will have to implement it by June 2018.
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Advisories are based on information from intelligence agencies, United States embassies and host countries' governments, she said. Right now, Mexico ranks as a level two overall, but the state of Tamaulipas is a level four due to crime.
Virtual Aadhaar ID: How Will It Work?
What is Virtual ID (VID) and how is it different from your 12-digit Aadhaar number? This is an effort to curb the number of people who will have access to the Aadhaar number.
VID is a 16-digit, randomly-generated number which can be used for authentication instead of the original Aadhaar number. Coincidentally, the new deadline for this is also 31 March, as directed by the Supreme Court.
"I think this is a very significant announcement by UIDAI and in some sense it really makes the case against it go away", he said.
Following its suspension, Airtel Payments Bank had launched a probe, wherein it was observed that some retailers, who were also acting as designated banking points, had not informed customers about savings account opening and direct benefit transfer (DBT) receipts in an upfront manner.
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All the remaining AUAs will be branded as Local AUAs and will neither get access to full KYC, nor can they store the Aadhaar number on their systems.