New Student Offer - Use Code HELLO

Register Now

RBI Proposes norms for outsourcing of IT services by banks, NBFCs

Published on June 24, 2022
Current Context: Reserve Bank proposed norms for the outsourcing of IT services to protect banks and other regulated entities from financial, operational, and reputational risks.
RBI Proposes norms for outsourcing of IT services by banks, NBFCs
  • 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
ebook store

About us

ramandeep singh

Ramandeep Singh, your guide to banking and insurance exams. With 14 years of experience and 5000+ selections, Ramandeep understands the path to success, having transitioned himself from Dena Bank and SBI. He's passionate about helping you achieve your banking and insurance dreams.

  • Follow me:
Close Menu
Close Menu