RBI issues detailed norms for outsourcing of IT services by banks, NBFCs

The Reserve Bank of India on Monday came out with detailed norms for the outsourcing of IT services by banks, NBFCs and regulated financial sector entities to ensure that such arrangements do not undermine their responsibilities and obligations to customers.

In its ‘Master Direction on Outsourcing of Information Technology Services’, RBI said that Regulated Entities (REs) have been extensively leveraging IT and IT-enabled Services (ITeS) to support their business models, products and services offered to their customers.

In February last year, the central bank proposed the issuance of suitable regulatory guidelines on outsourcing IT services with the aim to ensure effective management of attendant risks.