RBI financial services outsourcing guidance is different from RBI IT outsourcing. It focuses on regulated financial services activities outsourced by banks or other RBI-regulated entities while the regulated entity remains accountable.
Official sources
What the guidance is trying to do
RBI wants regulated entities to control risk when financial-service activities are performed by outside parties. Outsourcing cannot weaken customer protection, confidentiality, internal control, grievance handling, business continuity, or regulatory access.
What teams need to do
- Identify outsourced financial services activities and responsible owners.
- Maintain an outsourcing policy and approval process.
- Perform due diligence on service provider capability, reputation, financial condition, controls,
and customer-impact risk.
- Review contracts for confidentiality, audit, regulatory access, service standards, customer
grievance support, continuity, and termination.
- Monitor provider performance, complaints, incidents, issues, and remediation.
Evidence to maintain
- Outsourcing inventory and policy.
- Due diligence, approval, contract, and monitoring records.
- Customer confidentiality and complaint-handling evidence.
- Business continuity and termination evidence.
- Regulatory access and audit trail.
Common gaps
- Financial services outsourcing and IT outsourcing are mixed together without clear source mapping.
- Customer complaint evidence is not tied to provider governance.
- Contract protections are reviewed once and not monitored.
How Halbarad helps
Halbarad helps maintain outsourced service records, contracts, evidence, customer-impact issues, monitoring, remediation, and reporting.
Disclaimer
This guide is for general information only and is not legal advice. Review the official regulation, guidance, and supervisory materials, and consult qualified counsel or compliance advisors for your organization's specific obligations.