June 28, 2021<\/p>\n
The Chief Executive Officer
\nAll Co-operative Banks<\/p>\n
Madam \/ Dear Sir,<\/p>\n
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.<\/p>\n
While it is entirely the banks\u2019 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.<\/strong><\/p>\n 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.<\/p>\n Yours faithfully<\/p>\n (Sunil T. S. Nair)
\nChief General Manager<\/p>\n