- As per the RBI draft, Regulated Entities will not require prior approval from the central bank for the outsourcing of IT and IT-enabled services.
- Banks, payment banks, cooperative banks, credit information companies, NBFCs, and other regulated entities, would be required to put in place a comprehensive board-approved IT outsourcing policy.
- RE shall take steps to ensure that the service provider employs the same high standard of care in performing the services.
- Apart from that, it should set up a robust grievance redressal mechanism, which in no way shall be compromised on account of outsourcing.
- The risk management framework for the outsourcing of IT services should comprehensively deal with the processes and responsibilities for the identification, measurement, management, etc.
- In addition, it has also proposed additional requirements for cross-border outsourcing.
Question:
Q.1 Reserve Bank proposed norms for the outsourcing of ________ to protect banks from financial risks?a. Banking Services
b. IT Services
c. Digital services
d. Financial services