CURRENT AFFAIRS

Detailed explanation-1: -The Reserve Bank of India has, from time to time, issued several guidelines/ directions on managing risks in outsourcing of financial services to Scheduled Commercial Banks (excluding Regional Rural Banks (RRBs)), Non-Banking Finance Companies (NBFCs), Housing Finance Companies (HFCs) and co-operative banks.

Detailed explanation-2: -Q. The Reserve Bank of India released guidelines for outsourcing, targeted at which category of banks? Notes: The Reserve Bank of India released guidelines for co-operative banks to manage risks that could arise from outsourcing of financial services.

Detailed explanation-3: -All Scheduled Commercial Banks, Non-Banking Financial Companies (NBFCs), and Payment Banks are regulated by the Reserve Bank of India.

Detailed explanation-4: -Outsourcing within a Group/ Conglomerate. 9.1 RE may outsource any IT activity/ IT enabled service within its business group/ conglomerate, provided that such an arrangement is backed by the Board-approved policy and appropriate service level arrangements/ agreements with its group entities are in place.