Secure IT Outsourcing: A Guide for NBFCs and Banks (RBI Compliance)

The Reserve Bank of India (RBI) mandates secure IT outsourcing for banks and NBFCs. This synopsis outlines key compliance areas from the RBI guide.

1. (RRE egulated Entity) Accountability – REs remain ultimately responsible for data security, service quality, and compliance, even when outsourcing IT.
2. Strong Governance – REs are required to implement a board-approved policy defining roles, selection criteria, and permissible activities for outsourcing.
3. Selecting the Right Partner – Thorough due diligence on potential service providers, evaluating factors like security practices and data protection measures is to be conducted by REs
4. Clear Contracts – REs must establish legally binding agreements with service level agreements (SLAs), data security measures, termination clauses, and business continuity plans.
5. Risk Management – A framework to identify, assess, and mitigate risks associated with outsourcing, including data breaches is required to be implemented.
6. Monitoring and Oversight – Regular monitoring of service providers to ensure adherence to agreements and conduct security audits.
7. Outsourcing Within a Group – Group outsourcing requires board approval, clear agreements, and robust risk management.
8. Cross-Border Considerations – It is crucial for REs to stay informed of the jurisdictional risks and data access implications when outsourcing abroad.
9. Exit Strategies – Develop clear plans for transferring services and data in case of terminating an outsourcing arrangement.

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While the RBI guide requirements are mandatory, it is challenging for most businesses to implement these. Enlighta offers a comprehensive whitepaper that explains in great detail, the practical hurdles REs face when adhering to RBI and SEBI regulations for IT outsourcing in banks and NBFCs. It also explores how Enlighta’s solutions can help you overcome these challenges and achieve seamless compliance.

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Want to know how Enlighta can help you navigate the complexities of the RBI Guidelines for Banks and NBFCs and optimize your vendor lifecycle? Contact our experts today at info@enlighta.com or request a demo

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