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Above UIDAI circular dated 16th May says:
"ONLY GLOBAL AUAs will have access to full e-KYC with Aadhaar number, while other entities viz. LOCAL AUAs shall have access to Limited e-KYC and will NOT be allowed to STORE Aadhaar number. UIDAI has already provided new API v2.5 documents for implementation of Virtual ID, UID Token and full / limited e-KYC."
"Local AUAs MUST use VID for performing OTP based authentication. They may however use Aadhaar number for biometric authentication. They shall NOT be allowed to store Aadhaar number in their databases." --->> so although Local ones can use Aadhaar for authentication (only if you provide them Aadhaar number) but EVEN THEN they can NOT STORE that Aadhaar number, they can only store the UNIQUE 72 character alphanumeric TOKEN. For a particular Aadhaar number different AUAs/Sub-AUAs will have different UID Tokens. These Tokens are given by UIDAI in response of successfull authentication.
The current list of Global and Local AUAs is given in pdf. Currently there are mostly Banks (regulated by RBI) in Global and many telecom operators are considered Local AUAs. So it seems, Telecom Operators will now have to delete Aadhaar number linkages from their databases and store only Unique Tokens given to them by UIDAI for each individual, and all numbers which are held by a particular customer will be linked to that single Token in respective Operator's database.
"As per this office circular dated 1.05.2018, all AUAs shall have to fully migrate to the new system by 1.07.2018, failing which their authentication services will be discontinued and financial disincentives will be imposed."
EDIT:
One more helpful document, released on 1st May, prior to above circular:
"All Local AUAs/KUAs shall ensure to REPLACE Aadhaar numbers with UID Tokens and delete all Aadhaar numbers from their database including transaction logs by 31.08.2018"
And it was in this circular that they "decided to extend the timeline for implementation of Virtual ID, UID Token and Limited e-KYC by one month to 01st July 2018 for all AUAs/KUAs and ASAs."
I went to Vodafone and Airtel Stores yesterday on 28th May and asking them about VID implementation remembering the previous date which was 1st June 2018. They knew nothing about this concept and ofcourse nothing about this extention of date.
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