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This link might to help you..
What is your OS???
If its windows the syntax of password file is different
i.e PWDsid.ora not orapwsid
RMAN connect to Auxiliary Fails With ORA-01031: INSUFFICIENT PRIVILEGES [ID 1076656.1]
Cannot tell from you post, but would expect you to run the duplicate from the new standby server.
Here's several examples :
Should be more like
RMAN> connect auxiliary sys/vikas@orcl10
$ rman target sys/****@prod auxiliary /
this question is solved