The Reserve Bank of India on Monday released master directions for the outsourcing of IT services by banks and non-banks that ensure that regulated entities ring-fence themselves from any reputational risks arising from such arrangements.
The final guidelines that come into effect from October 1, also ensure that any IT outsourcing arrangements do not undermine the responsibilities and obligations banks and non-banks have to customers.
The RBI has directed all regulated entities to ensure that the service provider employs the same high standard of care in performing the services as would have been employed by regulated entities if the same activity was not outsourced.
Source:
Economic Times
