The Reserve Bank of India (RBI) has notified its Master Direction on Outsourcing of Information Technology Services. This notification was issued on 10th April, 2023 and the directions shall be enforced from 1st October, 2023.
It may be recalled that a draft Master Direction on Outsourcing of IT Services was released for public comments in 23rd June, 2022. The RBI has now finalised the Reserve Bank of India (Outsourcing of Information Technology Services) Directions, 2023.
The underlying principle of these directions is to ensure that outsourcing arrangements neither diminish Regulated Entities (REs) ability to fulfil its obligations to customers nor impede effective supervision by the RBI.