• Fri. Nov 22nd, 2024

Guidelines for Managing Risk in Outsourcing of Financial Services by Cooperative Banks

June 28, 2021

The Chief Executive Officer
All Co-operative Banks

Madam / Dear Sir,

It is observed that the co-operative banks are increasingly using outsourcing as a means for reducing costs as well as for availing specialist expertise, where these are not available internally.

While it is entirely the banks’ prerogative to take a view on the desirability of outsourcing a permissible activity having regard to all relevant factors, including the commercial aspects of the decision, such outsourcing results in banks being exposed to various risks. To enable the co-operative banks to put in place necessary safeguards for addressing the risks inherent in outsourcing of activities, guidelines on managing risks in outsourcing are given in Annex.

3. Co-operative banks are advised to conduct a self-assessment of their existing outsourcing arrangements and bring the same in line with these guidelines within a period of six months from the date of issue of this circular.

Yours faithfully

(Sunil T. S. Nair)
Chief General Manager

To ReadMore….
Click the link below…..

https://www.dropbox.com/s/ebsitlzu77anlhl/Guidelines%20for%20Managing%20Risk%20in%20Outsourcing%20of%20Financial%20Services%20by%20Cooperative%20Banks.PDF?dl=0

 

 

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