Aadhaar-issuing body Unique Identification Authority of India (UIDAI) has given four more months to manufacturers and user agencies to comply with the new encryption norms for biometric authentication devices but posed a stiff fine for non-compliance after July 31.
This means that manufacturers and user agencies such as banks and telcos that were staring at June 1 deadline will get time until September 30 to ensure that the new encryption key is embedded in all devices used for Aadhaar authentication.
Nearly 15-16 lakh biometric devices are currently being used for Aadhaar authentication across the country.
"We have decided to grant additional time as some device manufacturers and user agencies asked for more time for rolling out the new standards onto existing authentication devices," UIDAI CEO Ajay Bhushan Pandey told PTI.
How Aadhaar will transform India in the future
The Unique Identification Authority of India (UIDAI) has effectively given four months to the device makers and authentication user agencies to comply with the new standards, with some riders.
A penalty of Re 0.30 will be imposed on each transaction, if these agencies use non-conforming or 'unregistered' biometric devices after July 31.
Only 'registered devices' that incorporate the new specifications will be allowed to perform Aadhaar authentication after September 30, 2017.
The additional time will ensure that the authentication process is not disrupted, Pandey said asserting that the security layers currently in place are enough to ensure that system is fortified against any breach.
Simplifying this, he said that while two "locks" exist currently - one at the level of agency and another at UIDAI - the new system will place the third lock on the biometric device itself.
The addition of another security layer to the hardware assumes significance as these devices are all set to take the centre-stage in biometric-based digital payments.
"Nearly two crore authentications are taking place every day, and we wanted the encryption roll-out to be non-disruptive. So we decided to take a gradual and measured approach," he said.
At the same time, the financial disincentives being put in place with effect from August 1 will ensure that the user agencies nudge the device makers to comply with the new standards at the earliest.
The financial disincentive or penalty of Rs 0.30 per transaction will be applicable to manufacturers and user agencies, and consumers will not be impacted in any way, Pandey assured.
UIDAI is the nodal body responsible for rolling out Aadhaar, the 12-digit unique identification number that identifies residents based on their biometrics.
While more than 115 crore Aadhaar have been generated in the country, the Aadhaar authentications have crossed 600 crores till date.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
