I had earlier written to request if the IDfy verification was legitimate.
There was an immediate response from the India office of Air Bnb confirming that the verification was legitimate and those like me who had earlier done a verification through a company called FIRST ADVANTAGE appointed by them (before IDfy) did not require to participate in the present IDfy appointed verification process.
They informed me that they would communicate to IDfy about this and I would recieve a confirmation from IDfy that I would not be required to take the verification and there would be no deactivation of my account as a result.
I am still awaiting this communication from IDfy.
If you have not been verified by any external company officially appointed by Air BnB like First Advantage or IDfy - you would need to go through the verification process once, as just uploading your identification (which was a requirement before June 2016) is not enough.