Connection to Target RMAN throws insufficient privileges error

I have primary database running over 11.1.0.7.5 and trying to create standby database using below command
connect target sys/password@dgprod
connect auxiliary /
run
allocate auxiliary channel c1 device type disk;
allocate auxiliary channel c2 device type disk;
allocate auxiliary channel c3 device type disk;
allocate auxiliary channel c4 device type disk;
duplicate target database for standby from active database
db_file_name_convert=(
'/u01/oradata/dgprod/datafile','/u01/oradata/dgstd/datafile')
nofilenamecheck;
But I am getting
RMAN-00571: ===========================================================
RMAN-00569: =============== ERROR MESSAGE STACK FOLLOWS ===============
RMAN-00571: ===========================================================
ORA-01031: insufficient privileges
I have checked that remote_login_passwordfile paramter over primaray database is set to exclusive and password file has been created over $ORACLE_HOME/dbs
Can anyone please suggest what I am missing here...

env | sort
_=/bin/env
CVSROOT=:pserver:buildadm:in@g2cvs:/home/cvsroot
DBA_SQL=/mnt/nas/scripts/shared/dba_sql
DDL_LOG=/home/oracle/ddl_log
EDITOR=vi
G_BROKEN_FILENAMES=1
HISTSIZE=1000
HOME=/home/oracle
HOSTNAME=dproddb11.us.traq.com
INPUTRC=/etc/inputrc
KDEDIR=/usr
LANG=en_US.UTF-8
LD_LIBRARY_PATH=/u01/app/oracle/product/11gr1ee/lib:/usr/lib
LESSOPEN=|/usr/bin/lesspipe.sh %s
LG_BACKUP_DIR=/mnt/nas/lg_backup
LOGNAME=oracle
LS_COLORS=no=00:fi=00:di=00;34:ln=00;36:pi=40;33:so=00;35:bd=40;33;01:cd=40;33;01:or=01;05;37;41:mi=01;05;37;41:ex=00;32:*.cmd=00;32:*.exe=00;32:*.com=00;32:*.btm=00;32:*.bat=00;32:*.sh=00;32:*.csh=00;32:*.tar=00;31:*.tgz=00;31:*.arj=00;31:*.taz=00;31:*.lzh=00;31:*.zip=00;31:*.z=00;31:*.Z=00;31:*.gz=00;31:*.bz2=00;31:*.bz=00;31:*.tz=00;31:*.rpm=00;31:*.cpio=00;31:*.jpg=00;35:*.gif=00;35:*.bmp=00;35:*.xbm=00;35:*.xpm=00;35:*.png=00;35:*.tif=00;35:
MAIL=/var/spool/mail/oracle
NAS_BASE=/mnt/nas
NLS_LANG=AMERICAN_AMERICA.AL32UTF8
OLDPWD=/u01/app/oracle/admin/dgstd/pfile
ORACLE_ADMIN=/u01/app/oracle/admin
ORACLE_BASE=/u01/app/oracle
ORACLE_BIN=/u01/app/oracle/admin/bin
ORACLE_BKUP_LOGS=/mnt/nas/backups/logs
ORACLE_BKUP=/mnt/nas/backups
ORACLE_HOME=/u01/app/oracle/product/11gr1ee
ORACLE_SID=dgstd
PAGER=/usr/bin/less
PATH=/usr/ccs/bin:/usr/bin/x11:/usr/kerberos/bin:/usr/local/bin:/bin:/usr/bin:/usr/X11R6/bin:/home/oracle/bin:/usr/local/bin:/u01/app/oracle/product/11gr1ee/bin
PROMPT_COMMAND=echo -ne "\033]0;${ORACLE_SID} ${USER}@${HOSTNAME%%.*}:${PWD/$HOME/~}\007"
PS1=dgstd \u@\h:\w >
PWD=/u01/app/oracle/admin/dgstd/create
SCRIPTS_BASE=/mnt/nas/scripts
SHELL=/bin/bash
SHLVL=1
SQLPATH=/mnt/nas/scripts/shared/dba_sql:/u01/app/oracle/product/11gr1ee/rdbms/admin
SSH_ASKPASS=/usr/libexec/openssh/gnome-ssh-askpass
SSH_CLIENT=::ffff:172.30.4.5 58102 22
SSH_CONNECTION=::ffff:172.30.4.5 58102 ::ffff:10.2.5.41 22
SSH_TTY=/dev/pts/1
TERM=xterm
USER=oracle

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    https://www.oracleinternals.blogspot.com

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