Reserve Bank s regulation on outsourcing of IT services by banking sector entities is aimed at improving corporate governance and will protect the interest of consumers, say industry experts.
The Reserve Bank of India (RBI) has recently come out with detailed norms for the outsourcing of IT
new delhi, reserve bank’s regulation on outsourcing of it services by banking sector entities is aimed at improving corporate governance and will protect the interest of consumers, say industry experts. the reserve bank of ind
These norms came in the backdrop of the current practice of regulated entities (REs) of extensively leveraging IT and IT-enabled services (ITeS) to support their business models.
The RBI said the underlying principle of the Master Direction is to ensure that outsourcing arrangements neither diminish REs ability to fulfil its obligations to customers nor impede effective supervision by the RBI.