Key highlights of the publication:
- The Reserve Bank of India, on 26 October 2023, released Draft Master Direction – Reserve Bank of India (Managing Risks and Code of Conduct in Outsourcing of Financial Services) Directions, 2023. This is in line with the RBI’s Monetary Policy Statement on Development and Regulatory Policies dated 5 August 2022, with the objective of ensuring harmonisation of extant guidelines issued to the different categories of regulated entities (REs).
- The RBI has consolidated the guidelines on the outsourcing of financial services under one guideline applicable to all commercial banks, AIFIs, NBFCs and HFCs, cooperative banks, and credit information companies. This has been primarily done with the intent of harmonising the extant directions/guidelines/ instructions to enable REs to have all current instructions on the outsourcing of financial services at one place for reference.
Managing risks and code of conduct in outsourcing of financial services
This publication provides our assessment of the RBI's Draft Master Direction